International Trade debate Part 2 Essay
International Trade debate Part 2
In reading my classmate’s paper, it is interesting to note that while the author is against unrestricted trade, the author nevertheless cites many of its benefits such as reducing dependency and cutting the cost of living. What is even more interesting is that the author tries to build a case around arguments that consider these benefits as detriments without ample support. When countries have to compete globally, they would have to streamline their products in order to find their most competitive wares or they won’t be able to compete at all.
This opinion which is also mirrored by my paper is true, but the fear that some countries would engage in unfair practices is unfounded. For one thing, what does the author mean by “unfair” competition? Offering a price that is lower than your competitor’s is not unfair, it’s just competition. As the paper also mentions, this leads to specialization of goods based on each participating nation’s capabilities.
While some of our products might not be marketable because of cheaper, higher-quality brands from some other countries, other goods that we export would be more marketable because of free trade and we could focus on those goods for export and not have to spread our resources too thin. This way, we can get the best profit for our best product. But what about countries that cannot be competitive? What about countries who simply do not have globally competitive products? Globalization also gives them the benefit of having cheaper products for their labor force to afford.
Kellison (2006) states that economies that cannot offer globally competitive products usually end up offering another valuable resource, labor. Free trade cuts the cost of living for its laborers which make them afford better lifestyles.
What is so wrong with that? In the final analysis, it is clear that globalization has a rightful place in today’s economy. References Kellison, P. (2006). Labor Forces in the 21st Century. N. Y. : Bakeman Books. My classmate’s paper: International Trade Debate “The Case for Protection” My paper: International Trade.