Essay: Consequences of Free Trade

Sample Essay

The entrepreneurial class certainly has benefitted but the workers and the poor may be increasingly drawn into conditions of instability (Grinwade 1996). Some argue that this has to be viewed as a trade off in terms of increasing consumption that free trade allows and the greater economic benefits.

However, a very important consideration that emerges from the dominant position of the US on the international stage is that it has to play a leading role in international politics as well which  may bring it into conflict with China over trade as well as ideological conflict with Iran and other states. In such a case, the US chooses to exercise sanctions on the countries and use protective trade measures. Thus achieving a state of complete free trade may not be viable for the US, and accounts for the concern of the public that feels that barriers should only be lowered when reciprocated by the other nation. Thus it can be said that it is beneficial for the United States to follow the route of free trade but it can only be pursued to a limited extent, leaving room for some control with the Congress and the Executive branch. Global agreements can be a way to negotiate out of this problem and develop greater understanding possibly with the trading partners.

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