Elmont Memorial High School

Ginai Prosper

Elmont Memorial High School

Long Island Import Export Association Student Scholarship 2010 Essay Selections #1

Free trade is receiving and sending goods without government interference. Free trade is beneficial for some people like the wealthy businessmen who own or operate the businesses but negative on other people like the people who produce the products for low wages. It’s better to protect certain products from foreign competition. Overall free trade is beneficial.

Free trade means that the government wouldn’t take taxes on the products getting traded or received. This will help the consumers pay less for the products. There are many import export companies all over the United States that compete to sell there products for the lowest price possible. With competition, the consumer can look at many sources to find the product of their choice and get it for the lowest price. If the product had trading taxes from the government, the product would cost more because the business owners would make sure that they end up making a profit as opposed to a negative gross profit.

There are many questions like “why do corporations go outside for their products” and “why do these outside sources make more products to export than keep in their own country”? The answer is because there is cheap labor outside of the United States and free trade makes it even cheaper. Free trade promotes economic growth. Even though most of the jobs in the United States are going to countries like China and India, and it would seem like that would cause unemployment and economic problems, the United States will benefit from free trade and getting products for cheaper prices out of the United States. According to , The Chinese would get paid on average $250 US for a year to make products but if those same products were made in the United States would cost $34,000. So the United States businessman would save about $33,750 just from getting the products made outside of the country. Another way that they save money is buying the products completely made. If the product isn’t completely made then the United States would have to pay someone to finish the product.

Even thought the people in the foreign countries are getting repressed by this free trading system because they get paid low wages, they benefit in a social and governmental way. The poorer countries will learn more about capitalism and technology so their country will advance. It also shows discipline and transparency in a banking aspect. These are the only group of people who really don’t benefit from free trade. Unfortunately even if there were taxes on trading, they won’t get paid anymore anyway. The repression of these people in these poor countries brings up an ethical issue. If we’re trying to show the poorer countries capitalism and technology, we’re not really helping them by repressing them. If we teach them about democracy and how they should have rights and have a successful economy, they will not want to be repressed. They may rebel and not want to work. We want to teach them but continue to use them for low wages. Is that morally correct? Are we too concerned about money that we don’t care who we use to make money, just as long as we get money?

As stated earlier, competition can be good for the consumers if the competition is in the United States. Competition in different countries can cause trouble. That can cause the United States to lose money and that’s why it’s better to protect certain products from foreign competition. Some countries like the Middle East make millions of dollars off of oil. They shouldn’t benefit from free trade because that would make their country too powerful. Especially that we’re in war with them makes it hard for us to have a free trade agreement with them. They also should have a difficult time receiving certain items like bombs and guns and other military weapons so they can’t attack other nations as easily. We should make sure that other nations shouldn’t become overpowering to all the countries. Every free trade agreement should be different with different countries. Trading with certain countries can cause disagreement and wars. If one country feels neglected or feels like they are getting disrespected or unfair treatment, it would cause problems.

In conclusion, the consumers and the business people benefit from free trade while the only people who really don’t benefit from free trade are the low wage earners who make the products. They don’t benefit economically and that means they don’t really benefit since “money makes the world go ‘round.” Some countries like the Middle East should be limited of what they trade and who they should trade with.