Free Trade

The economic principle I learned was that "People gain when they trade voluntarily. My overall question was How does Free Trade help Americans. Overall I came to the conclusion that free trade is good for the economy and people.

Based on my research I found that free trade would help out many people and countries. This allows everyone to benefit at their own specific task. This will provide more products and more incentive to create new products.

Secondly I learned that free trade provides newer more innovative jobs. Also quality of the goes up by a large margin since countries don't have to pay the hefty tax.

Free trades overall affect on the economy?

                                                         

The Economic principle I'm exploring is people gain when they trade voluntarily

My research question to help me study the economic principle is "How does free trade help Americans

The article published on Investopedia titled Free trade demonstrates this principle by showing the overall economic impact free trade has

First the article explains how "economies can experience faster growth rates." By having free trade it allows countries and businesses in foreign countries to focus on creating specialized products. This results in increased economic impacts for both countries.

Secondly discussing the economic growth. The article talks about how "free trade reduces imported-input costs, thus reducing businesses' production costs and promoting economic growth." This allows businesses to create products at the most efficient price.

Lastly free trade allows for economies in different countries to have a fair chance to succeed. When everyone follows the same thing there is no corrupt systems and wrongful loopholes put in place. This allows for fair competition in all countries.

How does free trade have an affect on jobs?

                                                            

The Economic principle I'm exploring is people gain when they trade voluntarily

My research question to help me study the economic principle is "How does free trade help Americans

The article published on AIER titled "How much does free trade affect employment" demonstrates this principle by showing the impact free trade would have on jobs.

First the article talks about how when China started to ship more goods to the US there was a huge decrease in the manufacturing jobs. According to the very influential 2013 study it estimates that a quarter of the decline in total manufacturing employment between 1990 and 2007 came from china's import competition, which translates to about 1.5 million fewer jobs.

Second the article talks about how even though their will be a decrease in manufacturing jobs their will be new jobs. The author predicts that at least as many new jobs that will disappear will reappear in other markets.

Lastly the article talks about how employment naturally grows with population growth. According to the article it talks about when a new worker arrives he is able to create his own job which he then uses the money to spend on stuff which creates overall new jobs in the working force.

In my next blog post I will discuss the overall affect free trade will have on the economy.

What countries will benefit from free trade?

What countries will benefit from free trade?

The Economic Principle I’m Exploring is that people gain when they trade voluntarily

My research question to help me study the economic principle is How does free trade help Americans

The article published by Cato Institute called the Benefit of Free Trade demonstrates the principle by
showing how many countries would benefit from free trade.

First the article discusses how if we get cheap goods from other countries it lowers the price of goods which overall benefit consumers and businesses.  According to Kreiger “the objective of free trade is therefore to get goods on advantageous terms”. This will let people satisfy their wants. It also lets us benefit from the division of labor and comparative advantage.

Secondly the article brings up how if we have free trade both countries that are trading with each other can
prosper.For example if Switzerland is very good at making watches and need wheat While Canada is
good at growing wheat but need watches. They should be able to trade with each other freely. This allows
prosperity because people will be able to produce goods that they have a competitive advantage over.
Thus providing this product to other places in the world.

Lastly going off of the second point some countries are able to make better products. By providing free
trade it will allow for all countries to profit at things that they are good at making.

In my next blog post I will discuss How does free trade have an affect on jobs?

Free trade's affect on consumer spending?

                                       

The Economic Principle I'm Exploring is that people gain when they trade voluntarily.

My research question to help me study the economic principle is How does free trade help Americans?

The article published by Investopedia called Free trade demonstrates this economic principle by showing how free trade would have an affect on the price of goods and consumer spending.

First, cheaper goods coming from places such as China and Mexico makes it so the prices go down on goods. Provided their is free trade the US will be able to get goods from these places that they can price well. Do this this imports and exports will overall increase do to the fact that people will be trading goods more frequently than the already giant trade market.

Secondly studies have shown that with  free trade consumer spending would increase by more than 5 percent per year due to this. This is overall good for the economy because consumer spending creates a stronger economy. 

Lastly going off of the second point while  consumers will be paying less they won't mind paying more for American products. According to the author "although consumers face higher prices and fewer choices under protectionist policies, movements to buy American typically generate widespread support". So even though we will have free trade people will still buy American products that are provided at stores.

In my next blog post I will research the question What countries will benefit from free trade?

Free Trade

                                                                         

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• The economic principle (Links to an external site.)Links to an external site. I will explore is (copy/paste bolded from the link):  People gain when they trade voluntarily.
• The overall question I will research to help explore the economic principle is (the question should contain 1-2 keywords from the economic principle): How does free trade help Americans. 
• 3-4 subquestions that will help me answer my overall research question are: 
  •  How does free trade affect the price of goods and consumer spending?
  •   What countries will benefit from free trade?
  • How does free trade have an affect on jobs?
  • How will free trade have an affect on the overall economy?
• Links to 3-4 reliable resources that can help answer the research question:
  • Investopedia  
  • SmallbusinessLinks to an external site.
  • The Balance