Free Trade And Its Effects On Society - 1655 Words

Free trade hates certain things. It hates regulations, tariffs, taxes, subsidies for local business, and cultural customs that interfere with efficient production and trade. This is why international organizations, governments, and corporations have created free trade zones. These zones are perfect because they have little or no regulation, environmental or social, tariffs, taxes, or subsidies. Basically, a free trade zone is a regulation-free, haven for factories where pieces of goods can be shipped, assembled, and shipped back out at the very lowest cost possible. But there is a catch, once the countries have allowed sweatshops (factories, assembly plants) to take hold, a chain reaction is set in motion. The low wages that sweatshops pay create three things in poverty, which creates hunger, disease, and lack of funds for medicine. The hunger and disease can cause more hunger and disease because the victims of hunger and disease can no longer work to get the money that could fix th eir hunger and disease. They just cause more poverty. The mechanisms of this global stage are complicated and, for the most part, hidden. The players are more easily named. The World Trade Organization (WTO) and the World Bank loan money to poor countries to help their economies and infrastructures. But they loan at a price: deference. Once the poor countries are in debt, they must make concessions in their spending like cutting health care. In this way, free trade takes advantage of poverty.Show MoreRelatedUnderstanding the Proposed Benefits of Free Trade1023 Words   |  5 Pagesdetails on this topic, see Supply and demand. Two simple ways to understand the proposed benefits of free trade are through David Ricardo s theory of comparative advantage and by analyzing the impact of a tariff or import quota. 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