2018-05-02 06:32:00 Wed ET
technology antitrust competition bilateral trade free trade fair trade trade agreement trade surplus trade deficit multilateralism neoliberalism world trade organization regulation public utility current account compliance
What are the primary pros and cons of free trade or fair trade in the current Sino-American quagmire? Free trade means allowing goods and services to move as freely as possible across different countries. As countries develop over time, they start swapping goods and services across national borders. As transport improves in speed and quality, these countries start buying and selling goods and services abroad. When governments struggle to raise domestic taxes, it is easier to carry out the fair trade policy of levying heavy duties on foreign imports. Most economists eventually gain the upper hand because keeping these trade barriers as low as possible proves to be a sensible economic policy.
In accordance with the law of comparative advantage, free trade allows countries and corporations to specialize in intermediate production, service provision, or new tech innovation. Further, free trade expands the size of the economic pie and thus shifts scare resources from the less productive firms to the productive ones.
However, not everyone becomes better off. Some receive a smaller slice of the pie because product market concentration and dominance can exacerbate economic inequality. Free trade enhances the political discourse of peace and cooperation. It is important for the government to improve affordable residential real estate and labor mobility to counterbalance the exogenous shocks from fair trade barriers.
If any of our AYA Analytica financial health memos (FHM), blog posts, ebooks, newsletters, and notifications etc, or any other form of online content curation, involves potential copyright concerns, please feel free to contact us at service@ayafintech.network so that we can remove relevant content in response to any such request within a reasonable time frame.
2018-04-02 07:33:00 Monday ET
China President Xi JinPing tries to ease trade tension between America and China in his presidential address at the annual Boao forum. In his vulnerable att
2017-12-17 11:41:00 Sunday ET
Warren Buffett points out that it is important to invest in oneself. Learning about oneself empowers him or her to lead a meaningful life. This valuable inv
2020-02-02 10:31:00 Sunday ET
Our proprietary alpha investment model outperforms the major stock market benchmarks such as S&P 500, MSCI, Dow Jones, and Nasdaq. We implement
2018-11-03 11:36:00 Saturday ET
Apple adds fresh features to its new iPad Pro and MacBook Air in addition to its prior suite of iPhone XS, iPhone XS Max, and iPhone XR back in September 20
2019-02-02 11:36:00 Saturday ET
The Trump administration teams up with western allies to bar HuaWei and other Chinese tech firms from building the 5G high-speed infrastructure due to natio
2019-11-15 13:34:00 Friday ET
The Economist offers a special report that the new normal state of economic affairs shines fresh light on the division of labor between central banks and go