Free trade
Free trade (the same likelihood Bow Station, free trade), the customs , such as state intervention, producers and traders the freedom to eliminate interference with trade things.19th century to mercantilism based on protectionism against the British Adam Smith , Ricardo , France 's Quesnay honored et al.
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Summary [ edit ]
Benefits of free trade, international specialization ( comparative advantage to specialize in) is measured by, is too high tariffs and other trade barriers, the benefits of trade will not occur in the international division of labor has lost interest. Thus, by including the elimination of tariffs, which can be considered to increase the economic benefits are free to conduct trade. Benefits of free trade, rather than income transfers from the other hand, is achieved by increasing the income of the overall economy, benefit the two countries can be involved in the trade.
Free trade have not been, the situation is evolving international division of labor is not in the process of transition to the state and the international division of labor can be achieved free trade, national economies of the industrial structure transformation occurs. In this particular comparative disadvantage industries will decline because they may be exposed to fierce competition, strong opposition to free trade.
In addition, competition in the free trade intuitively appear to compete with other countries, of what actually happens is competition for resources between industries in the country. If you made an example of free trade and Japan, to the comparative advantage of industrial resources are concentrated, and the decline of agricultural comparative disadvantage.Japanese agriculture instead of agriculture is in competition with other countries, which have to compete with domestic industry.
For criticism of free trade, the race to the bottom and anti-globalization see also.
In the real economy [ edit ]
Currently, WTO (World Trade Organization) have established the rules of trade between nations, which strive to be achieved than a state close to free trade.
History [ edit ]
Currently, states are said to achieve global free trade even Historically, free trade has been through various historical.
19th-century earlier, the international division of labor in the industry boasted an overwhelming superiority in the field of English , was struggling to establish a global free trade system. Was considered to be significantly more for the country to produce profits.
Originally free trade was expanded at the request of capitalist industry. In the early 19th century British corn laws and navigation law with protecting the domestic market by the patent had been dominated for some companies the benefit of trade, capital raised from industry criticism for it. The direct reason to protect domestic wheat, bread prices have been higher, it was. These economists and Smith and Ricardo, Cobden , Bright , including Manchester School honored this claim is supported widely by the domestic policy of not protecting their domestic markets and the basic policy of the United Kingdom became the 19th century. Trade and free trade while on the other side, do not regard that parties to protect the national market, the German Customs Union to ensure that there was difficult example. To growth in non-European regions Opium War , Arrow War , such as was possible to enforce free trade, free trade to force the military to Germany and the United States was not possible. In contrast, the UK production industry has raised calls for the introduction of protective tariffs, the introduction至Razu, England eventually that will expand the economy to free trade unilaterally block. In countries outside the core of the United Kingdom, the introduction of protective tariffs to foster domestic industries against British free trade has been declining fast.
Like the early 19th century, Germany in, as they should protect their own industries without the free trade German Customs Union was signed. This is to give an advantage to the domestic industry alliance to abolish tariff barriers within the region, the region in which free trade can be realized. This benefit of free trade, has become one of the foundations for economic success in Germany later.
1930 , the Great Depression countries exposed to the ravages of free trade area (Europe, USA and Japan powers and their colonies ), which leaked trade demand in the domestic economies in order to stop the flow of foreign economies of tariffs and other trade barriers to張Ri巡Rashita. This economic block called. The disruption of free trade, the pace of economic recovery shifted around, resulting in significant economic disadvantages.
20th century late, in Western Europe, and benefit from each other expanding Asian economies security seeking to start the elimination of trade barriers. Around Britain, France, expanded free trade area involving West Germany. This is the current European Union was.
See also [ edit ]
External links [ edit ]
- "Free Trade" - Encyclopedia of Earth in the "free trade" on the item (in English) .
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