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  • Essay / Advantages and disadvantages of free trade

    Free trade and free trade with other countries allows businesses and markets to reach as many customers as possible, thereby increasing sales, revenues, and potentially profits for businesses. When sales increase, businesses can hire, leading to lower unemployment, which is good for the economy. Increased sales lead to large-scale production. Large-scale production is generally more efficient than small-scale production, leading to greater profits for businesses, which can be reinvested in the economy as businesses spend their money to advance their businesses. Say no to plagiarism. Get a tailor-made essay on “Why Violent Video Games Should Not Be Banned”? Get an Original Essay Free trade with other nations can also improve relations with other nations. For example, if another nation becomes prosperous through trade with the United States, it will want to be friendly to the United States. Over an extended period of time, free trade can create large businesses that make it difficult or impossible for small businesses to compete fairly. Without competition from small businesses, large companies find that they can raise prices to increase profits because consumers have no alternative. This leads to a culture of corporate greed that hurts consumers and the economy, and the average worker gets ripped off. Additionally, without competition from small businesses, fewer businesses work in the sector, leading to lower employment and harming the economy. Which means that if you don't work for the big company, you get fired and ripped off (that's where the famous saying "the rich get richer and the poor get poorer" comes from), and if you work for big business, your wages will stay flat or go down instead of up because the managers of big companies know that once they eliminate the competition their workers will have nowhere to go if they are not satisfied with their salary compensation. When there is a lot of competition, workers may leave their jobs and work for the competition if they are unhappy with their salary compensation. For this reason, I do not believe that the advantages of free trade outweigh its disadvantages, and that Keynesian theories of government involvement are necessary, at least to some extent. Keep in mind: this is just a sample. Get a personalized article from our expert now. authors.Get a Custom Essay The Boeing Company is an example of a company in my area that has downsized due to outsourced operations, and there are no similar companies in the area. The competition may be on the other side of the world. In my area, it is common knowledge that Boeing hires and fires thousands in any given year..