Free Trade

Free Trade

Introduction

Free trade does not require reciprocity or equality of competitive conditions. While it is always desirable to press for open markets, he was an exchange with a protectionist country is inherently beneficial. Protecting a sustainable industry, which destroys the price signals that allow adaptation to penalize a country itself. As for the idea of ??equal conditions of competition, so it's great for a regatta, it does not make sense for shipping. The economy is not a game, and the pursuit of efficiency is paramount. The climate, skills, economic legislation, public charges, wages, abundant capital, access to reserves of raw materials are all unequal conditions of competition which, through exchange, will create value. There is no difference between the competition of cheap foreign labor market and that of a machine that saves human labor and lowers prices. Besides would you want to level the playing field, he should say why and how far? Working time? Taxes? Salaries? And if so, should it be made from above, from below the average? And natural conditions? Should be harmonized on sunny days to preserve the equality of competitive conditions in tourism (Chang, 2008).

Discussion

There are enough examples: apologists for big business to defend their subsidy Company on behalf of the free market, "scientists" that the miserable result of decades of welfare state and privileges tradition simply as "our free market" prices; States, the so-called "free trade agreements" include who have in reality only the goal of allowing the policy of control in the trade.

WTO role

In this model fits the World Trade Organization (WTO). From the left-statist clientele, the so-called anti-globalization, it is usually criticized because she wants to press on developing countries, neoliberal globalization at all costs. From the liberal and conservative direction, they will defend against it, because - as we all know - yes free trade promotes prosperity and globalization is a good thing. The WTO itself says "the smooth, predictable and as free as possible" to its goal of world trade. 

On the contrary, In fact, the WTO is not an organization for the promotion of free trade. It is an attempt, a corporatist model on the international level to be transmitted. Representatives of States "negotiate" tariff cuts to each other, union and corporate lobbyists get their "recommendations" one, to wrestle all day long about "fair rules" for world trade (Bernstein, 2008). Tough interest politics as usual, mercantilist-minded politicians, corporations and slavering for protectionism socialist-oriented trade union leader with the desire for global social standards here you will find common forum for the transfer ...