Barriers and Benefits of Free Trade

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Barriers and Benefits in Free Trade When it comes to benefits of trade agreements, it is understood that the country that is reducing its trade barriers, and the liberalization, is the country that gains the most. It was said that free trade agreements (FTA), make it easier and cheaper for US companies to export their goods and services, while creating jobs and boosting the economy. Some critics argue that such packs can have the opposite effect. Taking jobs from US workers and shipping them overseas. Free Trade Agreements with S. Korea, Columbia, and Panama await congressional approval. When you reduce your trade barriers, goods become cheaper for consumers, and imports become cheaper for businesses. A good example of a business that was vulnerable to layoffs/closure would be a former employer I worked with for a year, back in 2006-2007, is Dell Computers. Dell Computers made desktop computers, and they failed to realize that consumers are more interested in laptop computers. The closures are part of a concerted effort on the part of Dell to remain competitive in the personal computer market. Many of its competitors are outsourcing production to low-wage nations and saving on production costs, and Dell is following their lead. Dell now manufactures personal computers in Poland, Malaysia, India, China and Ireland, but plans to soon close the Ireland facility as well. The information can be found at the link below. http://www.wral.com/business/story/6156112/ http://economyincrisis.org/content/dell-opening-chinese-factory-creating-3000-jobs When Dell computers closed down I lost my job and so did hundreds of other employees. Recently a new business took over the Dell Plant, Herbalife, and has started to employ over 200 workers this year. The full story is down below.

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