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Potential costs of adopting a free trade regime

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Reference no: EM131060845

Free trade with no government interference is certain to hurt some domestic industries that are not competitive globally. Workers in the U.S. textile industry, for example, may lose jobs to workers in lower wage economies. Yet consumers in the U.S. like to purchase inexpensive, quality goods.

Government policy can affect demand through product standards, influence rivalry through regulation and antitrust laws, and impact the availability of highly educated workers and advanced transportation infrastructure.

Respond to the following:

  • What are the potential costs of adopting a free trade regime? What do you think governments should do to reduce these costs?
  • Please discuss the cultural motives for restricting free trade, and explain why import quotas help trade restriction.

Must be 1 page in lengh.

Reference no: EM131060845

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