Question

Should the US pursue a free trade approach, or should the US regulate trade? Why?

Answer 1

Should the US pursue a free trade approach, or should the US regulate trade? Why?

Ans

The US should pursue the free trade approach because

• Free trade will benefit everyone involved in the process
• This will enhance employment opportunity at both the importing and exporting country
• Free trade will give broader choices to consumers as the prices are less
• Free trade provides a favorable business condition to set up their business in free trade zones, thereby contributing to the overall income of the nation
• Free trade promotes duty-free products - No Import duties raise. Thus government don't have to subsidies those goods to make it affordable.
• This will promote free-market

The US should regulate trade

• IF left to the market forces without any overwatch will lead to exploitation of the gullible consumers and other stakeholder involved
• It may happen that firms may form cartels to regulate the prices and production thus badly affecting the consumers
• further companies in order to reduce cost outsource their business in another country where they will pay an only penny for the same jobs, thus threatening the employment opportunities in the home country
• This will benefit only to firms who are powerful and already in business

Hence the USA should adopt the policy that includes both free trade as well as policies and regulation that benefits everyone involved.