Ethics of Free trade

8/7/2019 Ethics of Free trade

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The Ethics ofFree TradeArtyom Radionov

Arsen Abdyldaev

Ethics for Business and

Government


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DefiningFREE TRADE

Free trade: Free trade is the ability for countries toimport and export products with each otherwithout restrictions and paying additional costs,

called tariff


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Arguments for free tradeWhy its ethical


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Free Trade Brings PeopleTogether

} Trade opens the door for relationships

that transcend economic exchange. Whennations trade with one another, more than

material goods crosses borders. People and

ideas inevitably follow through the same

open doors


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Free Trade provides Peace

} As countries work together professionally,mutual respect for the countries' customsand cultures increase. Fears andprejudices diminish, and countries are lesslikely to fight each other


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Free Trade Helps poor

} Free trade tends to benefit the poor morethan the rich. When restrictions on trade

are removed by government, the price ofgoods tends to fall. Since the poor spendmost of their income on basic goods, suchas food, water, and medicines, lower

prices for such goods means the poorhave more surplus income.


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Free Trade EncouragesOther Basic Human Rights

} The wealth created from expanded trade

can help to nurture and sustain civil

institutions that can offer ideas and

influence outside of government


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Arguments against freetradeWhy its not ethical


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Increased Unemployment andIncreased Competition

}When countries open their internationalborders to member nations in the samefree trade zone, they also openthemselves up to the possibility of fiercecompetition which may come from other

nations in the same free trade zone.


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Unfavorable outcome for theconsumer

}

Free trade can allow for collusion andmonopolies which exist when companiesact in their own interest by trying to weedout smaller competitors due to theirmarket positions.


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Free trade can harm theenvironment

} Less developed countries may use upnatural reserves of raw materials to

export.

}Countries with strict pollution controls mayfind consumers import the goods fromother countries where legislation is weak

and pollution allowed


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Trade is a powerful policy tool:

}When dealing with other countries tradeleverage should not be given up because

of a belief in economic rationalism.Similarly, we should not give up oursovereignty over trade matters to regionalor international bodies. They shouldnt be

able to claim our laws are unfair barriersto trade


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Works cited:1. Mcgee,, By Joshua. "10 Advantages of Free Trade | EHow.com." EHow |

How To Do Just About Everything! | How To Videos & Articles. Web. 04

Dec. 2010. http://www.ehow.com/about_5381660_advantages-

trade.html.2. Griswold, Daniel. "Seven Moral Arguments for Free Trade | Daniel

Griswold | Cato Institute: Commentary." The Cato Institute. 1 May 2002.

Web. 04 Dec. 2010.

http://www.cato.org/pub_display.php?pub_id=10876

3. Cobb, John B. "Ethics, Economics and Free Trade." Religion-online.org.

Web. 4 Dec. 2010. http://www.religion-

online.org/showarticle.asp?title=101

4. "The Disadvantages of Free Trade | EHow.com." EHow | How To Do Just

About Everything! | How To Videos & Articles. Web. 04 Dec. 2010.

http://www.ehow.com/about_5467816_disadvantages-trade.html

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Ethics of Free trade