Free the country. Nowadays, productions of products are

movement of goods, services, capital and labor across national borders without
the intervention of government regulatory barriers is generally refers to the
term of free trade. Free trade is important because economic growth can be
generate and create more job opportunity in the country. Nowadays, productions
of products are no longer made in one place from start to finish. Instead, they
are located and assembled in different parts of the world. This happen because
of each country had their own benefits in terms of capital, labour and land. Because
of that reason, free trade is very important in economy activities. With free
trade, every economic activity can be implemented without restraint from any
party, especially the government as long as it does not violate the law. Each
country in the world can gain economic benefits from free trades. Means that,
free trade can promote worldwide sustainable growth and development.

(2003) point out that “free trade placed particular emphasis on the gains to
the domestic consumer and the stimulus to competition provided by a regime of
unrestricted trade” (p.26). Thus the freedom of buying and selling activities
that occur will make sure that the consumer will get merchandise at the lowest
price. Free trade is a trigger to efficiency in other ways besides acting on
costs, it also stimulates development of new products, the search for new and
the adoption of the latest techniques (Gomes, 2003). That’s means, free trade
is not only beneficial to the manufacturer, but also benefits the consumers.
Consumers are also one of the most important entities in economic activity.
Without consumer, economic activity cannot run smoothly. With free trade,
customers get more economic advantages in buying and selling activities,
especially in trading activities that involve relationships with other country
in the world. The relationship that occur also will bring the new development
of skills, knowledge, and efficiency of the country in doing economic

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(2011) point out that free trade “also refers to the bilateral and regional
agreements that liberalize trade between trading partners” (p.239). Free trade
will not happen without the bilateral relationship between the two countries. With
regional agreements, each member involved in the agreement knows the commitment
they must adhere to and obeys in order to avoid cheating in economic activity
especially when it involves bilateral relations between advanced countries and
developing countries. An agreement for free trade also known as free trade
agreements (FTAs) and occupy a dominant position in the international trade
regime. With FTAs, the level of trade between members of countries will expand
and they are likely to divert and reduce trade with non-members, thereby
affecting the economies of both member and non-members countries (Findlay &
Urata, 2010).  

In global
trade, mainstream economist have broadly agreed that any nation can benefits
economically by trading and specialising in production of goods or services for
which it has comparative advantages. That is the least cost in term of other
production forgone. Every country, whether rich or poor, large or small, has
comparative advantage in something so can obtain gains from trade. Global free
trades also leads to structural rationalisation which in turn leads to a more
efficient resource allocation. As an example, chemicals comparative advantage
has in oil producing nations. As a result, Mexico, Saudi Arabia, and Kuwait
compete well with United States chemical production firms and their opportunity
cost is low. As a result, their chemicals is less expensive because a lot of
the raw ingredients are produced in the oil distillery process. With trade, each
country can consume what it produces and both country can consume more of both

global economy, Asia has a unique place and condition. Its inhabitants include
the world’s poorest and also the richest. Through trade, some countries in Asia
have brought a dramatic improvement in the living standards of their people.
The data that release by World Development Indicators, World Bank, 2003, shows
that growth rate in GDP per year is increasing in the Asia country. This growth
rates show that output and trade in Asia countries was growing faster rate than
the rest of the world. This is because export and import activities actively
occur in the Asia countries. For example, Singapore trade with China,
Indonesia, Malaysia, Philippines, and India. This shows that the rate of growth
was relatively growth with other Asian countries.

conclusion, free trade involves the import and export activities that involves
the sale and the purchase of goods and services to residents from other
countries to other countries. with free trade, GDP in certain countries is
increase year by year and help in growth of economic activities. 


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