International Trade Assignment Protectionism and Free Trade
8 Pages1993 Words110 Views
Added on 2020-05-03
International Trade Assignment Protectionism and Free Trade
Added on 2020-05-03
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Running head: PROTECTIONISM AND FREE TRADEProtectionism and Free TradeName of the StudentName of the UniversityAuthor’s Note
1PROTECTIONISM AND FREE TRADEIntroductionThe European Union (EU) is a political and economic union between 28 Europeancountries. All these 28 countries together cover most portion of the continent. EU wasestablished after the end of World War II. The main motive behind the establishment of EU wasto establish economic cooperation among all the countries (The EU In Brief - European Union -European Commission). This can be considered as the emergence of the concept of free trade.The main aim of the concept of free trade is to make the countries economically independent inorder to avoid conflicts among them. It can be seen that EU has implement different kinds ofrules and regulations for the promotion of free trade across the companies. The principles of freetrade are considered as the founding principles of EU among its member countries and anothermajor aim of free trade agreement is to liberalize free trade all over the world.DiscussionAll over the world, EU is considered as the biggest trader union that accounts for almost16.5% important and exports of the whole world. EU’s initiative of the establishment of freetrade all over the world is considered as considered as the founding principles and it iscommitted towards the linearization of world trade market. In this context, it needs to bementioned that World Trade was established based on the principle of the World TradeOrganizations. However, the rule is different for EU as the free trade policies of EU has beendeveloped based on the exclusive principle of EU level. After the development of EU, thecommissioner discussed the agreements of EU with the policies of WTO to make the agreementacceptable in every country all over the world. EU is considered as the largest exporter all overthe world and it has the largest import marker all over the 100 countries (One Market Without
2PROTECTIONISM AND FREE TRADEBorders - European Union - European Commission). In addition, EU is the world’s largest singlemarket area for both the international and European consumers and for this reason, theconsumers enjoy many types of business benefits under the simplified business system of EU. Inthe trade system of EU, money, people, goods and services can be moved easily. It can be seenthat EU uses to negotiate their trade agreements with the countries of all over the world in orderto strengthen their trade relations. From trade policies, EU developed their Free TradeAgreements (Altbach). The main advantage of the free trade policies of EU is that it helps in thegrowth of business in the European markets. In addition, it helps in the creation of jobs in theEuropean countries. On the other hand, it helps in the opening of new business markets all overthe Europe (European Union Policy Towards Free Trade Agreements). It can be seen that there are many other major benefits of the free trade agreement ofEU. The free trade agreement of EU aims in the reduction of child labor as well as forced laborin the European markets. In addition, another major two objectives of free trade agreement of EUis to reduce environmental destruction and to reduce the volatility in commodity prices in theEuropean market (The European Union's Trade Policies And Their Economics Effects). Thedevelopment of the free trade policies of EU has made it sure that there is transparency andtraceability in all the trading processes in Europe. Apart from this, it is crucial to mention the factthat the development of free trade policies of EU has major positive impacts on the poorestcountries all over the world as it has taken the step to combine trade and development. The mainaim is to being improvements in businesses of the poor countries all over the world. As per thefree trade agreement, EU provides some major services for the development of the business ofthe poor countries (McCormick). They are to allow lower amount of duties in trade processes; tosupport small export businesses for developing the businesses of poor countries; to provide
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