109k views
1 vote
What are 6 disadvantages of international 'free' trade?

User CheatEx
by
7.7k points

1 Answer

3 votes

Final answer:

International 'free' trade has several disadvantages, including job loss, environmental dangers, unfair labor practices, dependence on other countries, trade imbalances, and loss of cultural diversity.

Step-by-step explanation:

There are several disadvantages of international 'free' trade. Some of them include:

  1. Job loss: When industries compete with cheaper imports, local businesses may struggle to compete and may have to downsize or close down, leading to job losses.
  2. Environmental dangers: International trade can lead to an increase in transportation, resulting in more carbon emissions and pollution from the transportation sector.
  3. Unfair labor practices: Some countries may have lower labor standards, allowing them to produce goods more cheaply. This can lead to a race to the bottom in terms of labor rights and wages.
  4. Dependence on other countries: Relying heavily on imports can make a country vulnerable to supply chain disruptions and economic shocks in other countries.
  5. Trade imbalances: International trade can sometimes result in persistent trade deficits or surpluses, which can have negative consequences for a country's economy.
  6. Loss of cultural diversity: International trade can lead to the homogenization of cultures as global corporations and popular products dominate local markets.
User Joe Heyming
by
7.5k points