Globalization
In today’s world, countries are becoming more and more interdependent on each other. The root of the interdependences can be traced from globalization. An agent of globalization is free trade amongst countries. Free trade is defined as “trade or commerce carried on without such restrictions as import duties, export bounties, domestic production subsidies, trade quotas, or import licenses” (free trade, 2008). There are numerous arguments around the world on both the advantages and disadvantages of free trade. Although many would assume that free trade only brings disadvantages to trading countries, the advantages of free trade prove to outweigh the disadvantages. The arguments for free trade are based on the economic growth of a country, and its own moral and socio-political standing.
Economically, the advantages will outweigh the disadvantages of free trade. Free trade increases the distribution of goods and services globally, because free trade permits specialization in countries (Griswold, Seven Moral Arguments for Free Trade, 2001). Specialization allows countries to give all of their resources to the production of specific goods and services that the country can produce efficiently and cheaply, in order to trade with other nations for goods that the country is not able to produce efficiently. For example, in Switzerland, the country is able to produce massive amounts of watches and export it to the world market (Information about the Economy of Switzerland, 2008). Switzerland exports the goods they are good at producing and imports the natural resources the country lacks. Through its membership to the European Free Trade Agreement (EFTA), Switzerland is able to import tariff-free resources from its member states including Liechtenstein, Norway, and Iceland. Under the free trade agreement, consumers are able to enjoy a higher standard of living by trading the goods and services they have produced for other commodities made somewhere else where free trade...
View Full Essay