Reasons Why Free Trade Has a Negative Impact on a Country's Economy Research Paper

Reasons Why Free Trade Has a Negative Impact on a Country's Economy - Research Paper Example Sadly, their effort to make the country open to goods from other countries and the desire to lower tariffs on items sold by America in the market of other nations backfired big time on the U.S. economy. Rather than raising the standards of international manufacture and creating a most conducive international business market, the cheap products that flooded the market were of inferior quality and did nothing to help ease the high tariffs that was pegged onto U.S. goods by the other nations in the free trade zone. In effect, by opening up America to goods from other nations, most of which are imitation items that pass themselves off as Class A goods, the political and economic leaders of the country themselves helped crash the American economy. There are a number of reasons as to why the citizens of America may wish to buy foreign made goods. It could be that there is a demand for the item which is not manufactured in America. Or maybe the item cost is much lower if they purchase one t hat is not American made. Whatever the reason, a market exists for Americans who prefer to buy foreign made goods. ... The reason that the American economy has managed to survive all the years prior to the advent of free trade was really quite simple. The money was spent within American shores and thus helped move the economy along through taxes collected and the salary of the people working in the field of manufacture. The demand for goods and services actually spurred the economy by creating jobs and balancing both the local and national government budgets. But the U.S. is currently experiencing a massive trade imbalance that has resulted in a lop sided economy and has forced America to compete in a massive free trade scale. The competition is heating up and it seems like the United States is not equipped to compete at such a level. The country fails to compete because Americans have lost sight of what is truly important in a global economy, the survival of one's own economy. Instead, American corporations have resorted to off shore manufacturing in an effort to compete in the free trade market. Sa dly, a U.S. brand not made in the United States is a totally different item or level of service when compared with a U.S. brand created and maintained within the borders of the United States. American workers are considered a liability in today's free-trade market because of the high cost of labor that they demand. It is because of these over pampered work force that factories and support systems have been moved to countries where people can manage to survive on a dollar a day. It is more appealing to the owners of companies to pay slave labor wages rather than give in to the exorbitant cost of manufacturing goods and creating support systems for their company within the United States. (Snyder, Michael â€Å"55 Reasons Why