explain how removal of trade barriers reduce poverty?

Question

Give the points to dicuss hoe removal of trade barriers reduce poverty

Answer 1

The best way to improve commerce and prosperity is to allow people to create goods/products and sell them directly to other people. Unfortunately, governments tend to step in and tax such transactions, frequently in the form of regulations and tariffs. Although governments will often state that the reason for the regulation is safety, the bottom line is that such regulations frequently exist to justify the government and increase the flow of tax money to the government.

If products can be sold without trade barriers, the products will cost less. This allows the people buying the products to buy more of them, which is usually good for the quality of life. The people making the products can focus on making the products more desirable, usually by improving their performance or lowering their price. This again is good for consumers.

Removing trade barriers lets people buy the products they want at the best price. That is always a good thing. However, if the prices are low because of government subsidies or similar actions, then that is unfair to producers in other countries that do not have the subsidy. A country that subsidizes an industry exports its unemployment to other countries, at least for that industry. It's a careful balancing act.