Answer to Question #182846 in Microeconomics for Laurene Tientcheu

Question

Write 3 arguments in favor of free trade and 2 against free trade. Make sure you support and justify your arguments. (2 points for each argument)

Answer 1

Argument in favor of free trade

Free trade increases prosperity for Americans—and the citizens of all participating nations—by allowing consumers to buy more, better-quality products at lower costs. It drives economic growth, enhanced efficiency, increased innovation, and the greater fairness that accompanies a rules-based system

Arguments against free trade

Free trade bases all wealth from foreign trade. It does not want to increase domestic commerce. It has industries for export that take advantage of third world nations.They call that comparative advantage.