Posted: June 24th, 2021
For some local workers, international trade means the end of their jobs. For them, free trade will only bring unemployment. This can be the conclusion that we can get if we look at the statistics of the survey conducted in America on 1995. When the respondents were asked if the international trading agreement causes loss of jobs, 63% of the respondents agreed while only 32% disagreed (World Public Opinion. Org, 2005). They seem to think that the success of free trade can be seen if there will be greater employment rate.
But the true success of international trade is not on producing jobs but by directing the people to the most productive jobs available. If there is a free trade between two countries, the companies that are less likely to gain may tend to reduce its workers but the companies that are most likely to succeed will tend to create new job opportunities. There would be an increase in the production of products that are in demand for export. This would result to a very productive economy. Aside from this, international trade opens new job opportunities for the workers.
If the country imports products from a trading partner, the trading partner will gain money. What are they going to do with the money? This money will circulate back to the country as payments for the products that the trading partner will import. Part may be brought back as investments to the country that will create new job opportunities. There can be loss of jobs on other industries but the new job opportunities that will open for the local workers will balance this effect. Industries and economy are not the only ones that will benefit from free trades. The free trade can also benefit the consumers.
As more exported products are brought to the market, the consumers are more likely to find better products at a low price (Lee, 1997). The country should not restrict international trading.
Lee, D. R. (1997). Free Trade to Benefit the Many, Not Fair Trade to Benefit the Few. Retrieved January 7, 2008 from http://www. independent. org/newsroom /article. asp? id=43 World Public Opinion. Org. (2005). Reservations About the Effects of Trade in Practice. Retrieved January 7, 2008 from http://www. americans-world. org/digest/ global_issues/intertrade/reservations_trade. cfm.
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