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This sample is from one of the University of the People’s Undergraduate courses.

Some of the
grammar and American Psychological Association (APA) formatting are incorrect. Please use
the Purdue Owl reference to ensure your references and in-text citations are correctly formatted.

Re: Unit 6 Free Trade Debate


by Student 1 - Tuesday, 25 July 2017, 3:02 AM

Hello everyone

As for free trade, I do support that because I support removing all kinds of barriers weather these
barriers are industrial, regional, or trade barriers because I see that the world with no barriers is a
much better place to live in with the presence of some laws to protect the basic things not to
control the humans and the world and by applying the free trade, I think that the economy of the
country will blossom and become much stronger and if all the countries applied free trade, things
could be much better in many levels as the economy in the UK for example became much
stronger when the free trade was applied " Through the WTO the UK has helped pushed through
the Trade Facilitation Agreement which, once implemented, could add over £70 billion to the
global economy annually of which £1 billion will come to the UK"(Fox, 2016). So as we can see
the benefit is not only for the UK but it is for many other countries.

Along with these benefits come some painful effects even for the same country that had that
benefit from the free trade and some of those effects are job losses due to cheap foreign labor and
drop in income as the AFLCIO argues that "CIO argues NAFTA has harmed consumers and
workers in all three countries, contributing to a loss of jobs and drop in income while
strengthening the clout of multinational corporations"(Chmielewski, ). NAFTA is the North
American Free Trade Agreement and it is argued that along with the benefits comes some bad
consequences. The free trade also sounds unfair for the developing countries that there are no
laws to protect their new industries " It is argued, developing countries need some trade
protection to be able to develop new industries. The WTO have sought to maintain the same
rules for developing countries preventing them from protecting new industries"(Pettinger, 2007).
So in this quotation, Pettinger indicates that the WTO does not change law to help the
developing countries and this way is not good for the economies of those countries.

References:

Fox, L.(2016). Liam Fox's Free Trade Speech. GOV.UK. Open Government Licence V3.0

Chmielewski, T. Negative Effect of Free Trade. Chron; Hearst Newspapers, LLC.

Pettinger, T.(2007). Criticism of WTO. Economics Help; EconomicsHelp.org

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Re: Unit 6 Free Trade Debate


by Student 2 - Tuesday, 25 July 2017, 10:42 AM

Hello Student 1,

Me too i support free trade. Free trade not only remove trade barriers among nations that signed
the agreement but free trade give consumers in the country the opportunity to purchase goods at
a lower price because there will be competition among business companies that sell goods in the
market.

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Re: Unit 6 Free Trade Debate


By Student 3 - Wednesday, 26 July 2017, 11:55 AM

Hello Student 1;

I agree, free trade is desirable for many reasons. I also agree that multinational corporate groups
seem to benefit more under current trade release agreements. Perhaps comparative advantage
doesn't work when both capital and the factors of production are mobile or easily recreated
through technology (Morrison, 2016).

Morrison, S. P.(2016, December 13) Ricardo's dilemma: 2 big problems with comparative
advantage.

National Economics Editorial, December 13, 2016. Retrieved from:

http://www.nationaleconomicseditorial.com/2016/12/13/problems-with-comparative-advantage/

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Re: Unit 6 Free Trade Debate


By Student 4 - Wednesday, 26 July 2017, 10:00 PM

Dear Student 1
Great work, and I agree with your opinion. World should be more free choice by human right.
Basic low and regulation should be essential, but for the matter, I strongly believe we all need
higher education as our fundamental element to have more responsible.

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Re: Unit 6 Free Trade Debate


by Student 2 - Tuesday, 25 July 2017, 8:31 AM

According to Economics Help.Com, International Trade ‘’ Free Trade means that countries can
import and export goods without any tariff barriers or other non-tariff barriers to trade. That is
there will be free trade due on taxes on International business companies that are importing and
exporting between partner nations.

I support free trade because free trade increases both import and export. This will create
investment in the country. Many countries with that trade agreement enjoy lower tariffs on their
export and import due or none tariffs due. Consumers in the country will be able to purchase
goods at a lower price because there will be surplus of goods in the market. This will also boost
the income of the citizens because goods prices will not be expensive. There will also be demand
for more workers for those companies that will bring their goods in the country that is there will
be job surplus. They will need workers to employ; to sell their goods and maintain them. When
there is a surplus of jobs, there will be in demand for more workers.

There are two main key components to improve economy growth. They are: jobs and prices
reduction on goods prices for consumers. When there are jobs, where majority of the citizens are
employed in the country and prices of goods are less expensive for consumers, no doubt there
will be a great improvement in the country’s economy. Disposable income of each working
citizen will increase; in turn the country’s GDP will grow. Thus, will cause economy expansion.
Citizens will enjoy better standard of living.

Reference:

Economics Help. Retrieved from: http://www.economicshelp.org/trade/benefits_free_trade/

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Re: Unit 6 Free Trade Debate


by Student 1 - Wednesday, 26 July 2017, 5:38 AM

Hello Student 2

Nice explanation but what about the other perspectives , Because free trade is considered to be
harmful for the developing countries according to some critics.

Although i also support free trade.

Best wishes.

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Re: Unit 6 Free Trade Debate


by Student 5 - Wednesday, 26 July 2017, 2:07 PM

Good use of the Economic Help website, but you failed to use proper APA formatting. Professor
Godfrey has already drilled us on this and for good reason. She has been telling us to use APA
formatting from the beginning of the course and there are students that just don't seem to get it.
This is how your article should have been posted:

*****************************************

Free Trade means that countries can import and export goods without any tariff barriers or other
non-tariff barriers to trade. That is there will be free trade due on taxes on International business
companies that are importing and exporting between partner nations. (Benefits of free trade,
n.d.) I support free trade because free trade increases both import and export. This will create investment in the country.
Many countries with that trade agreement enjoy lower tariffs on their export and import due or none tariffs due.
Consumers in the country will be able to purchase goods at a lower price because there will be a surplus of goods in the
market. This will also boost the income of the citizens because goods prices will not be expensive. There will also be
demand for more workers for those companies that will bring their goods in the country that is there will be job surplus.
They will need workers to employ; to sell their goods and maintain them. When there is a surplus of jobs, there will be in
demand for more workers. There are two main key components to improve economic growth. They are jobs and prices
reduction on goods prices for consumers. When there are jobs, where the majority of the citizens are employed in the
country and prices of goods are less expensive for consumers, no doubt there will be a great improvement in the country’s
economy. Disposable income of each working citizen will increase; in turn, the country’s GDP will grow. Thus, will
cause economic expansion. Citizens will enjoy a better standard of living.

Reference

Benefits of free trade. (n.d.). Retrieved July 26, 2017, from


http://www.economicshelp.org/trade/benefits_free_trade/

*****************************************
I hope this helps you in future discussions and assignments. I know it did for me as we were not
properly taught during our initial orientation. I ended up having to go out of UoPeople to find
other resources that made sense and gave excellent examples of proper APA formatting.

Signed Student 5

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Re: Unit 6 Free Trade Debate


by Student 4 - Tuesday, 25 July 2017, 5:18 PM

Globalization, it has a controversial argument. Free trade is a great opportunity for developing
countries to increase their job opportunity and income. There are people who live extreme
poverty have not a job, even in barrier trade economy, those people increase their income and
level of their standard living since the import making job for them. If it becomes free trade, they
definitely increase their job more, and their level of a living standard would improve. But how
about high paid worker who living in developed country, they might lose their job and decrease
their income. Even though, I think to give the fair opportunity in the world economy is
important. Here is why I think it’s important.

We can’t deny there is com friction in the world with varied reason, the level of living standard
is one of the reason. First of all, they lacking opportunity to access high education, it made
difficult for them to have a better idea to solve the issue or getting a better job in the world. Since
we have great innovated technology, globalization is getting way easier than last decades. But
since those countries which still waiting for the opportunity of improving their living standard,
usually, those countries have no same level of regulation for labor or environment issue. To give
an opportunity for them is incredibly wonderful, but they need the same level of regulation first.
Otherwise, the opportunity became the worldwide disaster.

Second, high paid worker who might feel the threat to lose their job because of free trade, my
perspective is optimistic. Why people want cheaper good and service? Because they have a
budget, if their budget becomes higher among the world, people will focus its quality of goods
and service. I assume high paid worker has advanced knowledge and skill, people who care
about quality more will order them to get much satisfaction.

So my perspective for free trade or barrier trade, I vote for the free trade, but there is the issue
which should take care before endorse free trade.

Reference: Rittenberg, L. and Tregarthen, T. (2012). Macroeconomics Principles V. 2.0.

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Re: Unit 6 Free Trade Debate


By Student 2 - Tuesday, 25 July 2017, 8:18 PM

Hello Student 4,

I agree with you that free trade create more jobs for the people in the country, because when
more business companies entering in the country due to the free trade consensus, those
companies will need more workers to do their jobs. In this light, unemployment rate will reduce.

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Re: Unit 6 Free Trade Debate


by Student 1 - Wednesday, 26 July 2017, 5:42 AM

Hello Student 4 .

Good job with explaining your ideas but unfortunately, when someone reads your writing, the
idea will not be as good as it would have been if there were less mistakes.

I say that kindly and no offence of course.

Wish you the best.

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Re: Unit 6 Free Trade Debate


by Student 3 - Wednesday, 26 July 2017, 11:41 AM

Hello, Student 4;

I see your point about regulation, but isn't it more a questions of flexibility? Labor will find its
equilibrium if workers are able to move about the labor market freely, but if labor is unskilled or
uneducated they are not flexible in this way. It seems to me that this issue has been the cause of
many sad situations with regard to increasing free trade in countries that are not fully developed.
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Re: Unit 6 Free Trade Debate


by Student 6 - Wednesday, 26 July 2017, 12:15 PM

Hello Student 4,

Your argument for free trade is very compelling. You have mentioned that people are afraid that
they may lose their jobs, so even without knowing anything about free trade, these people will
protest against any type of agreement that involves free trade. Many people do not even care to
hear both sides of the issue.

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Re: Unit 6 Free Trade Debate


by Student 6 - Tuesday, 25 July 2017, 9:06 PM

The Argument for Free Trade

I am a supporter of free trade. We have advanced to the point where trading with other countries
have become a fundamental part of the global economy. Many countries benefit from the exports
and imports that flow in and out of the country.

Aggregate demand is the total demand for all goods and services within a specific market
(Rittenberg & Tregarthen, 2012). A component of aggregate demand are net exports. This means
that a country's imports and exports will effort its real GDP. To give you an idea of how
important trade is to a country, in 2011, about have of the gains in real GDP of the U.S. was due
to the increase in exports (Rittenberg & Tregarthen, 2012). Then we have the aspect of
comparative advantage. When a country can produce any good with a lower opportunity cost
than another country, then that country has a comparative advantage. Two countries that have
comparative advantages in the production of different good, can trade these goods with each
other.

The United states engages in trade with various countries, every year. In 2016, 68 percent of the
United States exports consisted of just 10 groups of products (Workman, 2017). Out of the 1.4
trillion dollars in exports, these ten groups of goods were worth 990.5 trillion dollars. China is
the Unite States' biggest trade partner, with imports to the U.S. being much larger the exports to
China (Office of the United States Trade Representative, n.d.). I think everyone could understand
how important our trade with China is. Many of the item that are in people's homes are made in
China.

References

Office of the United States Trade Representative. (n.d.). The People Republic of China: U.S.-
China trade facts. Retrieved from https://ustr.gov/countries-regions/china-mongolia-
taiwan/peoples-republic-china

Rittenberg, L., & Tregarthen, T. (2012). Macroeconomics principles V. 2.0. Retrieved


from https://my.uopeople.edu/mod/resource/view.php?id=114959

Workman, D. (July 12, 2017). United States top 10 exports. Retrieved


from http://www.worldstopexports.com/united-states-top-10-exports/

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Re: Unit 6 Free Trade Debate


by Student 1 - Wednesday, 26 July 2017, 5:46 AM

Hello Student 6

No wounder that the free trade gave so many benefits for the US but what about the global
economy, what about the developing countries.

Best wishes.

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Re: Unit 6 Free Trade Debate


by Student 5 - Wednesday, 26 July 2017, 1:42 PM

Student 6 ,

I see that we are on the same page, but we need to have an FTA (Free Trade Agreement) with
China that would make imports and exports balanced. When we are spending more on imports
than what we are getting back on exports, there is economic unbalance and that needs to be
corrected by having China join an FTA that all countries involved, including the U.S., can agree
to and is favorable for everyone. It's the lack of FTA's that is hindering us and our current
president doesn't want to see the obvious because he is pandering to his Union based
constituents. He is a business man for goodness sake, so I know he is no dummy on how the
economy works.

Signed Student 5

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Re: Unit 6 Free Trade Debate


by Alberta Godfrey (Instructor) - Wednesday, 26 July 2017, 11:29 PM

Hello Student 6,

Great job on your observation and supporting your point of view. When the United States was in
the depression, which was called a recession, who bought up most of our debt to help save us
from total economic disaster?

Alberta

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Re: Unit 6 Free Trade Debate


by Student 3 - Tuesday, 25 July 2017, 9:10 PM

Our text presents a clear argument for free trade, based on the theories presented thus far.
What has been presented throughout is a clear picture, with graphs, of why free trade is
preferable (Rittenberg & Tregarthen, 2012, chpt. 15.1). Competing theories may have differing
opinions about this idea, but with the most economists favoring free trade, there is a consensus,
so to begin, we should look at where these theories lead us (Rittenberg & Tregarthen, 2012, p.
606).
When trade opens up, those with a comparative advantage in one production begin to
specialize or only produce what has the least opportunity cost for them, and this gives them
efficiency that makes that product cheapest for them to produce (Rittenberg & Tregarthen, 2012,
p. 55). In return, those products other lands produce are similarly cheaper in opportunity and real
cost and everyone gets a fuller basket due to this (Rittenberg & Tregarthen, n.d., p. 56). Please
check figure 2.4 for an illustration that multiple economies linked by free trade can produce
outputs greater than the sum of their individual outputs (Rittenberg & Tregarthen, 2012, p. 56).

As a society specializes, theoretically its exports begin to rise because of a lower relative
product price, pushing aggregate demand and increasing the exchange rate through supply and
demand, assuming a free-floating exchange (Rittenberg & Tregarthen, 2012). The increase in the
exchange rate then moderates volatility by reducing exports a bit, thereby rate-limits the push on
aggregate demand (Rittenberg & Tregarthen, 2012). It would seem this would make growth
gradual and sustainable.

One question is that of structural unemployment, and how this affects labor-force
participation in emerging market where labor is not flexible due to a lack of educational level.
Haiti in the 90s is a good example of this; because of a deal to lower their rice tariff from 50% to
3% in return for a loan, cheap rice from newly subsidized and technologically superior rice farms
in the U.S. out competed local production(O’Connor, M. R. 2013). Unfortunately, close to 70%
of the workforce was engaged in farming, making this situation strongly raise structural
unemployment, which had some negative effects (Georges, J. 2004). Now their economy is
much different, with a growth rate in real GDP of 1.4% in 2014, and more importantly, only
38.1% of the labor force engaged in agriculture (Haiti, 2017). Growth came, and the labor force
adjusted, but with much loss of output during the adjustment (Georges, J. 2004).

The theories we’ve studied give a good set of arguments for free trade, and this seems to be
logical and realistic. Still, one can note that even as late as 2007, theories that were thought
understood produced not a manageable contraction, but a hard fall in an economy that was
arguably one of the most experienced in the world. In the end, we are students, learning
something we haven’t experience with, so one must assume that further learning will lead to
clearer sets of opinions. Consequently, I think I will withhold my own judgment until a later
date.

References

Georges, J. (2004). Trade and the disappearance of Haitian rice. Ted Case Studies Number 725,
June 2004. Retrieved from:

http://archive.is/20130830194250/www1.american.edu/TED/haitirice.htm

Haiti (2017, July 25). In CIA world factbook. Retrieved from:

https://www.cia.gov/library/publications/the-world-factbook/geos/ha.html
O’Connor, M. R. (2013). subsidizing starvation. The FP Group, January 11, 2013. Retrieved
from:

http://foreignpolicy.com/2013/01/11/subsidizing-starvation/

Rittenberg, L., & Tregarthen, T. (2012). Macroeconomics principles V. 2.0. Retrieved from:

https://my.uopeople.edu/mod/resource/view.php?id=114959

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Re: Unit 6 Free Trade Debate


by Student 5 - Wednesday, 26 July 2017, 2:31 PM

Wow! Nicely done! The only mistake I found was this: (Rittenberg & Tregarthen, n.d., p. 56). It
should have been (Rittenberg & Tregarthen, 2012, p. 56), but other than that, this was a well-
written discussion and I can't argue with your APA formatting. And thank you for using other
reliable sources outside of the course book. Just one favor to ask for future posts, but could you
make the URL links live? If you highlight the URL, copy and then open the Link icon in the
Moodle area, you can paste the link and make it live. Please remember to check the box to "open
in new window." It just makes it a lot easier for us the readers to just click on the live link than
having to copy and paste into our browsers. Besides, that's the way it should be done. Below is
an example based on your references.

https://www.cia.gov/library/publications/the-world-factbook/geos/ha.html

Other than that, you did an awesome job! You made learning economics a little less boring and
more relevant, especially when it comes to free trade.

Thank you!

Signed Student 5

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Re: Unit 6 Free Trade Debate


by Student 3 - Wednesday, 26 July 2017, 3:57 PM

Thanks, Mario, I will do this. It has been a struggle to find what portions of APA standards are
usable in these text fields, and every semester I add some piece of understanding by paying
attention.

regards,

Signed Student 3

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Re: Unit 6 Free Trade Debate


by Alberta Godfrey (Instructor) - Wednesday, 26 July 2017, 11:17 PM

Hello Student 3,

Nice job on presenting your view and for noticing the authors of the textbook tone favored Free
Trade. Now, because of the tone of the author of the textbook, how many of your peers are
debating for Free Trade?

APA Note:

Great job on your APA reference formatting and in-text citations. Keep up the good work.

Alberta

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Re: Unit 6 Free Trade Debate


by Student 5 - Wednesday, 26 July 2017, 1:16 AM

Hello class,

I find it interesting that last year's U.S. elections actually forced me to read into what the Trans
Pacific Partnership (TPP) was all about and although at first glance, it seemed like a bad idea
for the United States to have joined this FTA (Free Trade Agreement), I later learned that it had
its own checks and balances that protected all countries involved. As a matter of fact, a Forbes
article written by a professor Taylor is what gave me a better insight into why free trade was a
good thing for the U.S. and for the world. (Taylor, 2016). What confused me, at the time, was
the fact that Hillary was opposed to the TPP when in fact she was the one who pushed it while
she was U.S. Secretary of State. (Diamond & Bash, 2017) But later on, I found out that it was
just a political move so as to not upset the Democrats that had heavy Unionized support. Which
leads to the fact that Unions should be disbanded and done away with as they are expensive and
discourage productivity. We are no longer at the dawn of the 20th century when Unions made
sense. (Sherk, 2008) Now, Trump catered to the unionized workers and promised them that he
would get rid of the Trans Pacific Partnership, which he eventually did once he came into
power.

Now, the whole debate has been that the TPP Free Trade Agreement was bad for the U.S.
economy and the U.S. worker, but according to data extracted from the 2015 U.S. Census
Bureau, countries that are part of an FTA (Free Trade Agreement) have purchased nearly half of
all U.S. exports. Furthermore, the U.S. trade with this countries was relatively balanced with
$710 billion in exports and $774 billion in imports. Sure, it's not perfect and there are $64 billion
dollars that are not coming into the U.S., but in contrast, trade with countries that were not part
of any FTA was not at all balanced. As a matter of fact, in 2015 we had $792 billion in exports,
while we spent $1,472 billion in imports. That's $680 billion dollars that the U.S. is not getting in
exports. (Taylor, 2016)

So, in conclusion, free trade is beneficial for the global economy just as long as it's done with an
agreement that can place checks and balances such as the TPP or the NAFTA (North American
Free Trade Agreement). To say the opposite is to go against our FTA history which suggests that
when U.S. workers and businesses are permitted to compete on a plain leveled field, they all
succeed. The data indicate that the U.S. is losing on trade because we don't have enough TPAs
and not the other way around. (Taylor, 2016)

References

Taylor, J. (2016, October 17). Free Trade Agreements Have Been Good For America. Retrieved
July 26, 2017, from https://www.forbes.com/sites/realspin/2016/10/06/free-trade-agreements-
have-been-good-for-america/#7db0ecfa6584

Diamond, J., & Bash, D. (2017, January 24). Trump signs order withdrawing from TPP.
Retrieved July 26, 2017, from http://www.cnn.com/2017/01/23/politics/trans-pacific-partnership-
trade-deal-withdrawal-trumps-first-executive-action-monday-sources-say/index.html

Sherk, J. (2008, April 1). Do Americans today still need labor unions? Retrieved July 26, 2017,
from http://www.heritage.org/jobs-and-labor/commentary/do-americans-today-still-need-labor-
unions

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Re: Unit 6 Free Trade Debate


by Student 6 - Wednesday, 26 July 2017, 12:00 PM

Hello Student 5,

First, I wish that we were at the point when unions are no longer needed. They still exist because
firms' first duty is to their shareholders. Like everything else, unions have their pros and cons,
but that is not why I responded. I too agree that free trade is good for the economy. There are
arguments for and against the TPP and NAFTA. That is a debate for another day. I am just
looking at the economical benefits that free trade gives the countries that participate.

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Re: Unit 6 Free Trade Debate


by Student 5- Wednesday, 26 July 2017, 1:33 PM

This is the way I look at it. Unions impede free trade. They halter economic progress and they
need to be done away with. At one time they had a purpose of protecting the worker during the
industrial revolution, but I'm pro of government passing a legislation that makes it a must for
companies and their employees to pass a state and industry approved certification for the skill
they claim to have and make sure they get recertified every 5 years. This will improve the quality
of work, safety, and create a standard when it comes to salary compensation. Those who join
TPP and NAFTA would have to do the same in order to meet the same standards of quality and
safety as well as salary. When you create something like this, you no longer have entitled U.S.
citizens sitting behind a Union collecting a paycheck just because of seniority instead of merit.
Furthermore, we no longer can cry that "other countries are taking our jobs," because the
standard will be for everyone. Let's be honest, globalization is here to stay and is not going
anywhere. The days of WWII are gone and everyone wants a piece of the pie. Below, is an
internet article that you may want to read when you get a chance. (N., & T., 2017)

References

N., & T. (2017, July 24). Why Trump's 'Buy American, Hire American' Is Un-American.
Retrieved July 26, 2017, from http://reason.com/reasontv/2017/07/24/trump-buy-american-hire-
american

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Re: Unit 6 Free Trade Debate


by Student 3 - Wednesday, 26 July 2017, 5:32 PM
My apologies for interjecting, but a certification plan is an interesting idea from the viewpoint of
what we are learning,

Increased use of certifications would logically increase structural unemployment in the


aggregate, if I am reading the text right (Rittenberg & Tregarthen, 2012). This seems obvious
because workers who lose one set of skilled positions must not only learn new skills, the usual
driver for structural unemployment, but learn and implement what is needed to be certified in
them (Rittenberg & Tregarthen, 2012). Also, as the skills needed to work change quickly, this
unemployment would be subject to certification lag, or the time it takes local government to
adjust to changing certification needs. Both of these would logically seem increase how much
structural unemployment a labor force must face, and reduce its flexibility. This would seem to
increase the time it takes for this market to self adjust, which might create negative unintended
consequences in an economy.

References

Rittenberg, L., & Tregarthen, T. (2012). Macroeconomics principles V. 2.0. Retrieved from

https://my.uopeople.edu/mod/resource/view.php?id=114959

Radcliffe, B. (2017). Unions: do they help or hurt workers? Retrieved from:

http://www.investopedia.com/articles/economics/09/unions-workers.asp?lgl=rira-baseline-
vertical

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Re: Unit 6 Free Trade Debate


by Alberta Godfrey (Instructor) - Wednesday, 26 July 2017, 11:08 PM

Hello All,

Good debate thread with supporting references to support each person's view.

Alberta

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Re: Unit 6 Free Trade Debate


by Student 7 - Wednesday, 26 July 2017, 6:29 PM

Given that we are allowed to share more than one perspective on the subject, I personally believe
that free trade has both advantages and disadvantages.

Some of the advantages that I personally find very beneficial are:

i. It allows free flow of goods and service between the partner countries which broaden
consumers' options.

ii. It promotes price competitiveness, which is an advantage for consumers.

iii. It allows transfer of knowledge, which develops the people (capacity building) from the
participating countries.

iv. It allows transfer of technology, which also enhances human development in the participating
countries.

v. It creates a more dynamic business environment through the exchange of culture and values.

While there are a number of other benefits of free trade, there are equally disadvantages thereof,
and they but not limited to:

i. It allows for a poor working condition as companies would want to employ cheap labor
without proper care so as to maximize profits.

ii. It promotes job outsourcing, as most companies would want to outsource jobs to cheaper
climes.

iii. It sometimes creates diplomatic tension, as disputes in agreement clauses sometimes create
tensions.

iv. "It facilitates the flow of illicit trade" (K. Amadeo, 2017)
As it is obvious that free trade comes with both advantages and disadvantages, I believe should
be adopted for its benefits but modified in order to eliminate the disadvantages.

Reference:

Anzetsewere (Nov. 2014): The Pros and Cons of Free Trade Areas. Retrieved from
https://anzetsewere.wordpress.com/2014/11/04/the-pros-and-cons-of-free-trade-areas/

K. Amadeo (March 20, 2017): Free Trade Agreement Pros and Cons. Retrieved from
https://www.thebalance.com/free-trade-agreement-pros-and-cons-3305845

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Re: Unit 6 Free Trade Debate


by Student 4 - Wednesday, 26 July 2017, 10:13 PM

Dear Student 7

Great work, regarding your disadvantage of i), I've experienced such outsourcing situation. It
seems company could save a lot of labor fee, but result was quority of the labor power. It's didn't
work well, so real matter is regarding the quority plus price. When it's matched at best point, I
think the company can increase their profit.

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Re: Unit 6 Free Trade Debate


by Student 8 - Wednesday, 26 July 2017, 9:35 PM
I believe that free trade is more of a benefit for the country than some tend to believe. The
lowering of tariffs, the increase in importation and the creation of trade treaties and relations can
lead to the benefit of both the importers and the exporters. Products imported that have lower
tariffs will have lower prices for better quality. The producers will not have to use worse quality
resources in order to make up for the money lost in tariffs, the pay rate for the workers will be
higher, the freedom to create that comes with this relative increase in income leads to innovative
and better ideas. All these things tie together to create better products for lower prices that then
leave the clients with products that are more satisfying and more money in their pockets to use
for other types of products. This leaves more money to circulate both in the importing countries
as well as the countries exporting. The stronger the relationship between countries, the higher the
probability that investors from each country will have interest in the other country. It takes
money to make money so if there is a constantly flow of work and money these countries will
have more capital to invest and the increasing wealth potential of the country will increase the
investment that other countries will put into it. More exports and innovation also leads to more
competition. Weaker industries that are changed by competition and new technology do lead to
some job loss, however, at the same time different technology opens doors to different, new
industries and the higher the flow of money results in higher wages. In a report written by Denise
Froning in 2000 states that “according to U.S. Trade Representative Barshefsky, U.S. exports
support over 12 million jobs in America, and trade-related jobs (paid) an average of 13 percent to
16 percent higher wages than do non-trade-related jobs” (Froning, 2000). More exports and
cheaper imports leads allows more money to be invested in infrastructure as well. As one door
closes another one opens. “Protectionism... attempts to protect jobs that the market will not
sustain, at the expense of more innovative industries” (Boudreaux & Ghei, 2017). I think some of
the biggest issues with free trade is that it is not a quick process and job loss is a drastic change
that is more noticeable than increases in wages. This makes the psychological illusion that the
increase in exports causes job loss even though at the same time changes are happening in other
areas. Free trade is beneficial in ways that aren’t always noticeable until we no longer have it.

Bibliography

Boudreaux, D., & Ghei, N. (2017). The Benefits of Free Trade: Addressing Key Myths. Mercatus Center.
Retrieved 27 July 2017, from https://www.mercatus.org/publication/benefits-free-trade-addressing-key-myths

Froning, D. (2000). The Benefits of Free Trade: A Guide For Policymakers. The Heritage Foundation. Retrieved 27 July
2017, from http://www.heritage.org/trade/report/the-benefits-free-trade-guide-policymakers

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Re: Unit 6 Free Trade Debate


by Student 4 - Wednesday, 26 July 2017, 10:05 PM

Dear Student 8
I agree with the matter of quority of product and service. To make profit and making production
with low quority should be more concider. As labor regulation wise and environment wise.

To make profit with regarding those matter is new challenge, but I believe the challenge makes
us wiser.

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Re: Unit 6 Free Trade Debate


by Alberta Godfrey (Instructor) - Wednesday, 26 July 2017, 10:50 PM

Hello Student 8,

Nice job on presenting your view of Free Trades benefits with your supporting references. You
recognized there would be some job loss but felt the ends justified the means.

APA Note:

Good job on your in-text citations. Your references should be titled References and the title
information should be upper and lower case except for proper names. Keep working on it.

Alberta

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Re: Unit 6 Free Trade Debate


by Student 9 - Wednesday, 26 July 2017, 10:43 PM

Before I took this course, I realize I had been rather cautious and suspicious of the idea of free
trade. My country had an agreement with a number of other countries to establish free trade
among them. Oppositions from my country argued that it would harm national and local
producers. However, now that the agreement has been passed and enacted, personally, I think
that, although it will be too quick to judge that the program is a success, it does not damage our
national producers and workforce either.

Now, after reading the chapter on international trade, I finally understand the force that drives
trade, and how free trade—as I have witnessed—does not affect employment. It is because free
trade has nothing to do with “the economy’s natural level of employment nor its real wage in the
long run; those are determined by the demand for and the supply curve of labor” (Rittenberg &
Tregarthen, 2012, p. 613).
Through this question, I have come to further appreciate how important it is to know the real
inner working of things. I let people feed me their narrative without trying to get to comprehend
the subject matter myself, and I let fear irrationally take over me. In the future, I will be more
careful to preserve my judgment before I know all the facts.

Reference

Rittenberg, L & Tregarthen, T. (2012). Macroeconomics Principles V. 2.0. Retrieved from


https://my.uopeople.edu/mod/resource/view.php?id=114959

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Re: Unit 6 Free Trade Debate


by Alberta Godfrey (Instructor) - Wednesday, 26 July 2017, 11:02 PM

Hello Student 9,

Interesting response. You are sharing what you have learned but you have not debated if you are
for Free Trade or against it. You are stating that knowledge is power, which it is. So, from what
you have learned are you for Free Trade or against it?

APA Note:

Good job on formatting your quotation correctly using the correct in-text format. Check the title
for upper and lower case formatting for your reference. Else wise keep working on your APA
formatting.

Alberta

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Re: Unit 6 Free Trade Debate


by Student 10 - Wednesday, 26 July 2017, 11:03 PM

I believe free trade is the way to go when it comes to international trading. As the textbook
mentioned, free trade has a compelling argument is globally it will reach economic efficiency, as
some countries are able to produce the same goods at lower cost, having a comparative
advantage (Rittenberg, Tregarthen 2008). This I believe is a strong enough argument on it's own
as it is inefficient to produce goods that is not worth it for households or businesses to do. An
example can be trying to grow bananas in the Tundra. Although it may be possible with current
technology (greenhouse and artificial soil) it would be inefficient to do so when it can be cheaply
grown in Ecuador.

The opposing perspective, where it can take jobs and increase unemployment, is true in the short
run but false in the long run (Rittenberg 2008). Although the government can help elevate with
temporary tariffs to ease the change in economic efficiency, it will be best to not impose as it is
damaging to the economy as a whole. Tariffs will eliminate the natural efficiency of the free
market and related to previous module, it can lead to what happened with socialist societies
where it cannot afford goods and lowers its GDP.

References

Rittenberg, L., & Tregarthen, T. D. (2008). Principles of macroeconomics. Nyack, NY:


Flatworld Knowledge.

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Re: Unit 6 Free Trade Debate


by Student 11 - Wednesday, 26 July 2017, 11:48 PM

Free trade will be beneficial to the Global economy because it will help to improve standards of
living in the poorer countries. A lot of countries work hard in improving their standard of living
and with free trade what you will have is a lot of investors will be able to invest in some
countries of choice so money will be generating in the country which will be able to help with
the improvement on living standards.

New ideas will be generated this will make a positive impact on the countries economy. Once
there is a flowing economy their will be a growth in the economy and he standards of living will
rise.

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