Effects Trade in the World Economy Term Paper Example | Topics and Well Written Essays - 2250 words

Effects Trade in the World Economy - Term Paper Example Free trade enables more goods and services to reach American consumers at lower prices, thereby substantially increasing their standard of living. Moreover, the benefits of free trade extend well beyond American households. Free trade helps to spread the value of freedom, reinforce the rule of law, and foster economic development in poor countries. The national debate over trade-related issues too often ignores these important benefits.†                If this is the case, why is it that there are those who oppose this kind of trade agreement. Analyzing the fact from the given statement would bring to us in a hypothesis that free trade could help stabilize the economy. However, what is in within the provisions of free trade that majority tends to disagree with its provision? And why do these people claim that the said trading activity would only jeopardize and put the economy of a certain country in a malady? These are the questions which revolve and come out into the picture whenever free trade becomes an issue.                Basically, if we are to analyze, these people would not be able to have these sentiments if they have not seen any irregularities with regards to the provisions of free trade. In contrary to the claim that the free trade agreement has made the economies in the world soaring high, Haslam (2002) pointed out the differences and negative implications of this kind of practice. â€Å"Free trade" policies simply allow corporations to freely access cheaper labor markets. Manufacturing facilities are moved to poorer nations - which have minuscule wages, often terrible working conditions and far fewer environmental regulations. Often these conditions result from direct interference by the US government, international financial institutions (such as the World Bank and International Monetary Fund) and/or the multinational corporations themselves. The idea that President Bush will be able to solely negotiate international free trade agreements - is downright terrifying. What the editorial calls "interference from Congress" is basically the way our country's Constitution is meant to work.