free trade?

[master terrence]

I want to know what eliminating all barriers to free trade(by the WTO) means, but can't seem to understand it. What gain is there the eliminating the barreirs? what are the barriers? what were the downsides in the first place? examples please. I'm a bit confused on the whole matter.

[Leader Desslock]

I want to know what eliminating all barriers to free trade(by the WTO) means, but can't seem to understand it. What gain is there the eliminating the barreirs? what are the barriers? what were the downsides in the first place? examples please. I'm a bit confused on the whole matter.
Free Trade (http://en.wikipedia.org/wiki/Free_trade)
Some Criticism of the WTO (http://en.wikipedia.org/wiki/World_Trade_Organization#Criticism_3)

So... for example...

Let's say that American companies can't produce certain goods (textiles, say) as cheaply as a company overseas. Those American cmopanies then petition the givernment to "level the playing field" in the US by charging a tariff on the imported textiles, thus raising their sale price in the states. In this way, both the domestic and the imported textiles will have the same price in the market, so the consumer will purchase the 'better' product, rather than just the 'cheapest' product.

Of course, since American textile producers think their products are better, then they're convinced this is a 'fair' system, at least domestically. But what happens if the domestic product is actually the inferior one? In that case, American companies might push for even higher import tariffs on goods - in effect making the domestic product the 'cheaper' product in the marketplace.

If this happens, then it will actually promote the continued production of an inferior domestic product. Why should the domestic producer feel the need to compete with a 'better' product, when he can simply crank out the same old crap and know that the government is going to make it attractive in the marketplace? Don't believe this can happen? Take a look at the American auto industry.

Because problems like this can happen, the concept of 'free trade' comes into play. In its idealistic form, it says, "Let everyone do their best, then let the marketplace decide." Pure capitalism. Some would argue that free trade opens up markets and business opportunities, others would argue it takes jobs away and ships them overseas. Depends on your place in the market, really.

All of this has been an oversimplification, but it's more or less what you were looking for, right?

[master terrence]

What you said was a piece I was missing. Something more arbitrary and (believe it or not) condensed. I was reading Paul Hawkens Diary. I knew that people were being hurt, but didn't realise the connection to the G.A.T.T. until now.

[BLACKANGEL32076]

Hell no! Import tariffs are the way to go! If you want to do business in the U.S., set up factories in the U.S.!

Period!!!

[master terrence]

using tarrifs that way isn't the way to go. What happened to less gov't involvement? If you want the US industry to do good, invest in it (the invisible hand). Don't try to shoot down it's competition. If we raise tarrifs on foreign cars, then Japan will raise tarrifs on American cars....china too, all of'em.

EDIT: I'm still going to buy my honda.

[Tenou]

using tarrifs that way isn't the way to go. What happened to less gov't involvement? If you want the US industry to do good, invest in it (the invisible hand). Don't try to shoot down it's competition. If we raise tarrifs on foreign cars, then Japan will raise tarrifs on American cars....china too, all of'em.

EDIT: I'm still going to buy my honda.Tariffs are sometimes necessary, like with Canada (unless Bush decides that he will go and charge a tariff on an item covered in reciprocity). It's what keeps Canadians buying Canadian. If Canadians don't buy Canadian, no one else will. Then we would have to rely on natural resources, and they're going the way of the wheat, fish, and timber... wait - that's pretty much all we have. Anyway, because the US can produce faster and cheaper (and not necessarily better) they get a whole heck of a lot of Canada's money (stats say we go for value over vendor - go figure). That means it's not being pumped back into the Canadian economy, which would in turn improve our manufacturing and what not. Ideally, that is.

[Suiko Eiji]

using tarrifs that way isn't the way to go. What happened to less gov't involvement? If you want the US industry to do good, invest in it (the invisible hand). Don't try to shoot down it's competition. If we raise tarrifs on foreign cars, then Japan will raise tarrifs on American cars....china too, all of'em.

EDIT: I'm still going to buy my honda.

Ah, another free market supporter. I'm tearing up :lol:

By the way, the "Buy American" thing against Japanese (and some German) cars has been a fallacy since the 1980s. You know where my Nissan was made? Tennesee. That Honda you're thinking of buying (which is a good move)? Alabama. That BMW that cut me off this morning? South Carolina.

Why does Detroit still play the card about people buying foreign cars and shipping American jobs overseas? Because all of those plants I mentioned above are non-union. And that drives Detroit nuts.

[master terrence]

no, I know that fords and stuff are made in Mexico, but the company is american. I know alot of european cars are manufactured in america, but they are still american cars.

The parts were probably made in some unknwon country, then shipped to another unknown country where smaller detail things (like AC knobs) are manufactured, then shipped to another country to be assembled and another to be sold.

I'm still gonna buy that Japanese honda though.


-thanks for the replies.