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The Case for Free Trade by Milton and Rose Friedman

International Free Trade is an agreement that involves cooperation between


at least two countries to reduce trade barriers (import quotas and tariffs) and to
increase trade of goods and services with each other. People are also free to move
between the countries, in addition to FTA, it would also be considered an open
border. It can be considered the second stage of economic integration. So, tariffs
are imposed to restrict trade, as they increase the price of imported goods and
services, making them more expensive to consumers. Tariffs provide additional
revenue for governments and domestic producers at the expense of consumers and
foreign producers. They are one of several tools available to shape trade policy. The
case of free trade is to preserve jobs and promote national security that gives
protection to the consumers that according to Friedman favorable balance trade
that exporting more than we import, sending abroad goods of greater value than
the goods we get from abroad.
Free trade encourages the creation of wealth, which means it will destroy
some jobs and create new ones, as guided by consumers' choices. Since tariffs
insulate domestic firms from competition, the protection keeps some people
stagnating in outmoded jobs, thereby discouraging them from seeking more
favorable employment in competitive industries.
There are three arguments which is the key issues between the free trade
and protectionism, which are the national security, infant industry and the beggarthy-neighbor. With regards to the case, the author cites that countries must promote
the cause of freedom by entering to a free trade on which an open market without

tariffs or other restrictions but subject to government policy to neutralize the status
of commercial and trade.

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