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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