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.