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Free trade refers to breaking down the restrictions to import goods into a country, such as import taxes and/or regulations. One of the effects of free trade is an increase in productivity. Joining a free trade organization or agreement allows the participating countries to standardize trading rules so that companies do not need to devote resources to figuring out the extra taxes and restrictions on every product for each individual country. Free trade increases productivity because the consumer will choose the person who can sell the highest quality item at the cheapest price--forcing manufacturers to either become more efficient or go out of business. The producers left in the market will also increase the average productivity of the industry. Increasing productivity means companies can use fewer workers to produce more goods. These displaced workers can go to industries in which the country has an advantage over others. According to the Heritage Foundation, despite losses in manufacturing jobs in the U.S. and China, productivity gains resulted in an increase in gross domestic production for both countries. According to the 2007 presidential economic report, the lower prices on goods saved some four-person households up to $10,000 in total on their purchases. In order for a country's people to live better, they need to produce goods more efficiently. In order to gain productivity to live better, they also need to trade with countries that can produce certain items more cheaply and of a higher quality. US Department of Commerce: U.S. Free Trade Agreements The Heritage Foundation: Productivity Growth, Not Trade, Is Cutting Manufacturing Jobs Texas Christian University: Gains From Trade: Don't Forget ProductivityAdministration
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by thatsJustme on February 26th, 2010
well, lets just say a lot of our produce goes foreign and a lot foreign comes here.....like Toyota...we would really be messed up if we dare make foes of Japan......
loss of productivity we would become STAGNANT...we would fall in upon ourselves.....and we simply do not have the resources to keep America producing ALONE....free trade aids both traders financially and productively.....
Atlas Shrugged...its fiction but it will scare the beejeebies out of you...but it seems to be our present leader and governmental corruptness to a tee....
by Moongrim on February 9th, 2010
About the only thing 'free trade' does is make it easier for the company to avoid restricitive production laws like environmental protection laws, and worker safety laws.
both of which are an impediment against profits and productivity.
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