The and electronic. This proof that trade between

The free trade which result in countries that specialize in
the production of certain goods efficiently and preferred than other countries
which defined comparative advantage. To put simply, a country will import goods
and services that they cannot produce while they focusing on certain
products.  Smith, Adam (1904) stated they
prefer to buy commodity from foreign countries as they offering much cheaper
than they make it by themselves. Free trade give benefit to many companies in another
country to gain experience in producing for foreign markets. In fact, it gives
an opportunity to consumers in choosing a wider variety of goods and services.
Plus, it also will increase purchasing power for businesses. Under a policy of
free trade, specialization will increase wealth, production of goods as well
maximizes the labour.

For instance, China is very rich in growth for textiles and
apparel while on the other hand UK industries grew rapidly in machinery,
transport equipment and electronic. This proof that trade between China and the
UK being highly complementary. Bilateral trade exchange began in the 1950s whereas
China is the UK’s largest investment source while UK’s is China second largest
trading partner. It reached by $785bn by 2015, which approximately $596bn is
from exports, accounting for 75.9 percent. With that, it provides consumers
with a variety of goods that they can gain from different countries as well
with cheaper prices (Chen, 2017).

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Another example, Middle Eastern countries such as Qatar are
very rich in reserves of oil but without trade, there would be not much benefit
in having so much oil. Japan on the other hand, has very few raw materials, So,
if they intend not to trade with other country, Japan would be very poor
(Economics Help Website, 2010). So, it will benefit them  if they began to trade with each other. Besides,
it gives an opportunity to farmers for having a fairly-paid wage for their job
promoting good farming, as a lot of fair-trade produce is also organic. The
highest level of production is from specialization. In fact, each nation can
consume the amount of the good that it wants to consume through trade.
Consequently, nations become more efficient because of they maximized in their
own production. The advantage of economies of scale will lead to lower prices
for consumers. Free trade will balance the needs, supply and demand plus
allowing the trade become easier. Within a nation, it can be a positive vibe
for development.

Some of the researchers frequently oppose free trade
because it will increase job outsourcing.Many countries employed foreign
employees to help them with local marketing, contacts and language. In result,
there will be high unemployment in their home country. Besides that, free trade
will encourage manufacturers to hire foreign labour with cheap prices
indirectly rob the opportunities of local labour to get a job. Other than that,
outsourcing is time consuming when a company waste their time in training
foreign employees who don’t understand rule and policies of the company.
According to the article written by Kimberly Amadeo, free trade give a huge
impact on American workers. American worker believes that security is another
big issue that a company will confront when hiring foreign workers. There will
be a potentially high risk for Information Technology security breaks such as
their business process secrets will be exposed.With that, in 2016 presidential
campaign Donald Trump once said he would bring the job back by renegotiating
with NAFTA. He threatened to impose tariffs on imports from Mexico and China,
so that the price of the products from those countries will become higher and
difficult to compete in America market.           

But, basically tremendous advantaged of international free
trade have flowed from U.S free-trade agreements which cover U.S, Mexico and
Canada. NAFTA was executed between these three countries as they have a common
border and high potential as economic leaders of the region. The first formally
North American Trade Agreement (NAFTA) was conducted in January 1994. In terms
of the agreement, trade restrictions such as tariffs, non-tariff and quota
barriers were scheduled to be eliminated within 5 years of period (Hashemzadeh,
1997). When NAFTA
was fully implemented, manufacturers in US 
gave uncontrolled access to the growing market in Mexico for high
technology product while giving consumers in US a lower price on goods. With that,
NAFTA is expecting to raise productivity by shifting jobs to the most efficient
sectors in the economy. Besides, Mexico also got the benefit from good capital
inflow and outflow and creation of better job at higher wages. It has increased
the foreign direct investment in Mexico through NAFTA. According to NAFTA Now
website, “Mexico has received US$156 billion from its NAFTA partners between
1993 and 2008 and become one of the biggest recipients of foreign direct
investment among developing the market.

However, economic arguments oppose free trade because they
said that free trade only give benefit to the wealthy within countries.
Companies that produce well in less-developed countries will impose a lower
wage on the labour. So, the rich become richer and the poor become poorer.
According to Bunzl (1999) it is difficult to see those in poor countries
improve their lot and thus narrow the gap between rich and poor, globalisation
therefore only serves as a productive, low-cost method for TNCs (Transnational
Corporations) to gain an advantage of low taxes, weak regulations and
vulnerable labour during penetrating the economies of developing countries. Everything
getting more complicated day by day. For instance, products being exported from
the poorer countries. However, with labour being paid less than their fair
wages in the poorer nations, the richer nations still the one that dominated
the wealth.


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