What are some of the major arguments for and against an open trading system (Free Trade)?

Answer 1

Comparative advantage:
Take the "last" American worker and "last" Chinese worker who needs work. The American guy can produce 2 computers or 10 bushels of corn. The Chinese guy can produce 1 computer or 1 bushel of corn. If no trade occurs the American guy could split his time and produce one computer and 5 bushels of corn, but if trade occurs he can make 10 bushels of corn and trade 3 of them for 1 computer. The Chinese guy is better off because he gets 3 bushels of corn and the American guy gets his computer and more corn.

Most any neo-classical model of trade will show that both countries will benefit (on average) from trade. Models will also show that trade will shift how a country chooses to distribute its labor. More people will be employed in sectors with are more competitive. Trade also forces some sectors to be more efficient if they wish to survive.

Workers who must adjust to the shifts in the market could be negatively effected by trade. Protected industries which where inefficient will hurt when they lose government protection from trade. The steel industry in the USA has failed to adjust to compete in many areas, so many former steel workers are looking for jobs. This is partially because companies failed to make the investments in production techniques so they failed to use the technological advantage they had and are currently suffering as a result.

People don't like retraining and firms don't like competition, however theory is very clear that labor flexiblity and competition are beneficial to the economy. Perhaps we should pay workers to retrain distributing that cost over all of society, but you'll find few economists against open "free trade".

Answer 2

Hello,
You should try with Penny Stocks Trading (you can find more info here: http://pennystocks.toptips.org )

Penny stocks, also known as cent stocks in some countries, are common shares of small public companies that trade at low prices per share.
I've been subscribing to this PennyStock web site for about a year now and have loved the objective advice they give. He really does look for quality stocks and I've made some pretty nice profits on a lot of his suggestions. Being still fairly new to investing I have been dabbling a lot in penny stocks to try and grow my account. I may not have a big account, but it's a lot bigger than it was a year ago. On just one of Nathan's picks this year I managed to make my investment back ten-fold! Be careful! Penny stocks are notoriously risky but if you follow the right method the risk is almost 0. I suggest to invest only little money first and then reinvest the profits. This is the site I'm using: http://pennystocks.toptips.org
Best

Answer 3

I only know my own argument against it. I don't like the way free trade is now because they can just sell a product however they want to. If they want to charge 500 dollars for a product and then lower it to 200 in the next 2 - 4 years, there is nothing there saying they can't do that. The way we price things is messed up, or something is there to mess up that process. I'm not that educated on economics, so these are only from my own humble perceptions.

Answer 4

Ask a Canadian! We have hardly any people but the worlds largest fresh water supply! Do you think that water will be worth more than gas in ten years! Oh yeah we have the worlds second largest oil and gas deposits anyways. We should rule the world but we get bullied by free trade sanctions and the US govt. I am for free trade but not for economic sanctions. Free trade should mean I am free to trade with whomever I like. Not I scratch your back or you will take what you like and economically backlash me so I get no Abercrombie and Fitch. Free trade is a farce and there is no such thing as free when people are only concerned with the economic viability of profits! No more capitalism! Lets go with Humanitarianism!!!

Answer 5

I've made a nice profit on a couple of suggestions he's given and plan to start trading his ideas a lot more. I definitely recommend subscribing to https://tr.im/pennystocks
Very good research, quality stocks. I was a bit weary of penny stocks from all the bad hype they receive but this guy is pretty legit. He's put my mind at ease with a lot of the fears I've had.

Answer 6

Penny stocks are loosely categorized companies with share prices of below $5 and with market caps of under $200 million. They are sometimes referred to as "the slot machines of the equity market" because of the money involved. There may be a good place for penny stocks in the portfolio of an experienced, advanced investor, however, if you follow this guide you will learn the most efficient strategies https://tr.im/c8109

Answer 7

1