Free trade between America and China

Limitless free trade is the situation whereby the government does not limit trade between

specific countries through the use of duties or quotas allowing its citizens to buy and sell goods

from these countries freely. In regards to China and the United States, free trade has led to an

increase in trade between the two countries bringing about numerous benefits. Some of the

impacts of free trade include; economic growth, reduced government expenses, dynamic

business climate, expertise and transfer of technology between the two countries [ CITATION KIm19

\l 1033 ]. Generally, international trade has enabled the two nations to focus on the production

and exportation of goods that they can produce effectively.

International trade has evolved over the last centuries. During the 16 th and 17th centuries,

Mercantilism was existent and it supported exports and discouraged import of goods. In 1776,

Adam Smith came up with a theory to promote the adoption of unrestricted free trade. David

Ricardo then built on the ideas of Adam Smith in his comparative advantage theory. Later in the

20th century, Bertil Ohlin and Heckscher refined the work of Ricardo.