Free Trade Policy

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Free trade policies are always better than protectionist ones. Discuss. The Free trade is defined as trade between two separate entities, usually countries, with little to no governmental interference and regulations. Free trade, also called opening trade, would allow all nations to prosper and develop fairly and equitably. However, free trade policies could make International trade much easier (Laurndee et. al. 1999) and can creative more job opportunities for developing countries (Bhagwati 2002). But in another side, free trade policies could also disaster to developing countries, which need to develop their own manufacture (List). Moreover, these policies helps developed countries receive raw materials in a low price, and sell finished products in a high price to those developing countries (Baldwin,2005). Although free trade policies may offer cheaper products to and make International business much easier, but it really could be a curse to developing countries, which need to develop their own manufacture and need more opportunities. Trade should be partly protected in developing countries, especially those raw materials and high-tech products trades. When considering the free trade policies, the national manufacture, which refers to local economic system, is a most important factor to take into account. National manufacture should be protected, instead of trade freely. As Krugman once noticed that, rich countries raised by protecting native industry, and free trade policies are ways developed countries take cheap labor force from developing areas. (2002) America, German, Japan and other developed countries who are now always publicize free trade policies, are all used to protect their trade until they became the First-class industrial countries in the world. For example, in the mid-19th century, the most economically developed country, the UK, had strongly
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