Free Trade and Protectionism Essay Example | Topics and Well Written Essays - 1750 words

Free Trade and Protectionism - Essay Example Hence free trade policy is a cost effective policy adopted by the governments. As sometimes the domestic substitute's price goes higher. So the government prefers the free trade policy through which the price of the goods becomes lower and in the other hand the economic improves. The free trade policy facilitates the optimal use of the economic resources. for an instance for some people to understand the free trade policy better this example could be taken if it is not possible to grow paddy in a desert country which will be very costly to grow the crop the country could make an free trade with some other country which grows paddy at a cheaper and a affordable rate so the government gets the maximum benefit, to say exactly the country is benefited economically. This free trade is beneficial in many ways to a country. But sometimes many groups also oppose for the method of free trade. The free trade is based on the optimal use of the economic resources by a country. To understand this in a better way the barriers to the free trade is chronicle shifting between the industries and the geographic areas. The very main concept for the free trade is that each and every count... ountry should know whether the demand could be meted out by the domestic coffee makers if it is not possible then the government should arrange for the free trade because the cost for the product becomes cheaper at that occasion. But instead of that if he tries to cultivate coffee with some other expensive technologies automatically the price goes to the peak. So now you can decide which one is cheaper whether the free trade product or the product manufactured in the domestic country. So this is the comparison between the free trade product and the domestic costly product. The trade of such goods flow between the countries with the unhinderence of the government so this makes the free trade easier. Since the time of the Second World War United States has become the most consistent proponents of the reduced tariffs and the free trade helped to establish the general agreements on the tariff barrier and the free trade. If we take the account of the economic theory the global free trade is not benefit to the society some times the selective application of the free trade and the tariff of some countries leads to the in efficiency of the country's economy. Due to this free trade policy the domestic producer suffers a lot. The opposers for the free trade policy are the nationalists, communists, agriculturalist they oppose due to some supposed problems. Sometimes they are also opposed by the domestic producer because the free trade policy creates a loss to the domestic producer and some time leads to the flooding of the local goods. The anti globalizations groups also do not support free trade because the economic conditions of the poor do not go up but they become poorer. Karl Marx wrote in The Communist Manifesto, "The bourgeoisie...has set up that single,