贸易自由的利弊

Free trade occurs when there are no artificial barriers put in place by governments to restrict the flow of goods and services between trading nations. Advantages of free trade

Increased production

specialisation countries which they have a comparative advantage are able to take advantage of efficiencies ,so they can increases the size of a firm’s market, resulting in lower average costs and increased productivity, ultimately leading to increased production.

Production efficiencies

Increased competition promotes innovative production methods, the use of new technology, marketing and distribution methods.

Benefits to consumers

Consumers benefit in the domestic economy as they can now obtain a greater variety of goods and services, which are supplied at the lowest prices. Employment

With free trade many jobs have been created , especially in manufacturing and service industries, which can absorb the larger amount of unemployment Economic growth

The countries involved in free trade experience rising living standards, increased real incomes and higher rates of economic growth. This is created by more competitive industries, increased productivity, efficiency and production levels.

Disadvantages of free trade

Although free trade has benefits, there are a number of arguments put forward by lobby groups and protestors who oppose free trade and trade liberalisation. These include:

?With the removal of trade barriers, structural unemployment may occur in the short term. it can be difficult for some workers to find employment in growth industries and government assistance is necessary.

?domestic economies become dependent on global markets.This means that businesses, employees and consumers are more vulnerable to downturns in the economies of our trading partners,

?International markets are not a level playing field as countries with surplus products may dump them on world markets at below cost.

Some lower-efficient industries may find it difficult to compete for long periods under such conditions.

?Free trade can lead to pollution and other environmental problems

Especially in developing countries, pay more emphasis on economic development and ignore the environmental protection. Large amount of companies operating under weaker environmental legislation in some countries.

China now as the world's "factory", a lot of research, development, and sales channel is not in the hands. In some parts of the industry or industry is still in a relatively passive position in international division of labor

The change of the international economic market, making investment environment at home and abroad are also changing accordingly

Under the condition of free trade, only in quantity, by low pin, basically belongs to the "poor" exports.,so our labor’s wage is very low