They argue that even if free trade actually creates more wealth overall, most of that wealth goes to the richest and most powerful, at the expense of everyone else. Because each country is doing what they’re best at, less time and resources are wasted, and there’s more to go around for everyone.īut for a lot of critics, it’s not just the size of the pie that matters, but who gets what. Then everyone can trade what they have for what they want. So instead of every country trying to make all the things they want, it makes more sense for each country to specialize and make the things they’re best suited to make. ![]() In short, every country is better at making some goods than they are at making other goods. People who support free trade often start with the idea of ‘ comparative advantage’. Others think it increases inequality and gives corporations too much power. Some people think it makes everyone richer and promotes development in poorer countries. The idea of free trade is both loved and despised. ![]() When people talk about ‘free trade’ they are talking about removing, or lessening some of these restrictions. Pretty much nowhere in the word has 100% free trade every country has a complex set of taxes on foreign goods (called tariffs), limits on how many goods can be brought in (called quotas) and outright restrictions on importing certain things. ![]() Free trade is the idea that things should be able to be traded between countries with as few restrictions or limitations as possible.
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