Liberalizing Trade - Pros & Cons

245 views
186 views

Published on

The pro\'s & con\'s of liberalizing world trade.

0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total views
245
On SlideShare
0
From Embeds
0
Number of Embeds
3
Actions
Shares
0
Downloads
3
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide

Liberalizing Trade - Pros & Cons

  1. 1. Liberalizing TradeKelly KokaiselPRO:Wealth: Liberalizing trade can bring jobs and wealth to communities that they can then use forinfrastructure, education, and energy improvements. ‘The World Bank has reported that per capita realincome grew nearly three times faster for the developing countries that lowered trade barriers (5percent per year) than for other developing countries (1.4 percent per year) in the 1990s’. This canbring people out of poverty and provide education that can make them productive world citizens thatwill eventually make everyone better off overall. [1]Ephemeralization: Liberalizing trade creates competition in the market place, driving down costs andforcing producers to find ways to do more with less. This pressure creates forces which move people tothink differently to create efficiencies in production. [1] Environment: ‘…liberalizing trade in environmental goods and services can support sustainabledevelopment goals by providing greater access at lower cost to key environmental technologies in areassuch as wastewater management, solid and hazardous waste management, remediation of soil andwater, and protection of ambient air and renewable energy production.’ The wealth andephemeralization from liberating trade can be leveraged to direct more resources to protecting andrestoring the environment. Any culture, rich or poor, can utilize this benefit. [1]CON:Big Government: ‘Along with tariff peaks and tariff escalation, non-tariff barriers (NTBs) remainimportant concerns for developing countries and require negotiating solutions when assessing potentialdevelopment gains from trade’. To protect people from harmful products or services, more governmentoversight is necessary. Laws to test products to ensure they are not harmful, border patrol, andmediation resources need to be funded and in place in order to assure fairness in global trade. [2]Biodiversity: In west Africa, for example, there is a small species of fish that is a cheap form of proteinfor the communities there. Artisan fishermen there catch the fish on a small scale to feed their familiesor villages. If trade were opened there, large industries could come in and not only destroy thepopulations of fish, but rob the communities of their cheap source of protein. [3]Pollution Haven: ‘Freer trade means greater specialization, increasing the concentration of pollutingindustries in some countries and decreasing it in others’. This is true in some South Americancommunities where environmental regulations are not as strict. Increasing free trade in areas wherepollution regulations are low would preclude them to abuse those freedoms and pollute theirenvironment in trade for a more productive economy, creating major imbalance. [4]
  2. 2. [1] http://www.america.gov/st/business-english/2007/January/20080608132136xjyrreP0.6870691.html[2] http://www.unctad.org//Templates/webflyer.asp?docid=6765&intItemID=3549&lang=1[3] http://www.foroyaa.gm/modules/news/article.php?storyid=5352[4] http://ideas.repec.org/p/nbr/nberwo/10585.html

×