Friday 10 June 2016

Complete free trade is not a fair game

Free trade without any restriction, such as tariffs, seems wonderful, but will widen the wealth gap. If we started free trade with all countries having the same productivity level and it was always peaceful, that would be perfect. However, countries started civilization at different times and have different progresses. When a country has higher productivity and technological innovations, it can be easier to exploit other countries on the earlier phases. Therefore, if we start free trade right now, we may find many developing countries may become like some African Americans in the American society that compared with other ethnic groups, they are stuck at the bottom of the society although they compete with others with equal opportunities.

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