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International Trade Controversy Protectionism Versus Free Trade Term Paper

¶ … free trade claim benefits to both individuals and society, while protectionists claim that people need protection from free trade. There is no doubt that business is becoming increasingly global and it seems free trade will mark the future of international business. By considering both sides of the argument, a balanced view of the issue can be obtained. It may even be possible to combine both sides of the argument to give a true account of the impact of free trade. There is no doubt that an international environment based on truly global free trade is becoming a reality. President George W. Bush recently travelled to China and met with Chinese officials to discuss free trade. In a press conference after the meeting he is quoted as saying, "China, as a full member of the WTO, will now be a full partner in the global trading system and will have the right and responsibility to fashion and enforce the rules of open trade." (Savadove) This event represents progress for the free trade movement, with the formal joining of China being a process 15 years in the making.

President Bush makes his status as a free trade advocate clear saying, "it is in our nations interest that we trade with China." (Savadove)

While Bush's status is clear, it would appear that the American people's is divided. A recent survey showed that 45 per cent support free trade, while 46 per cent support protectionism. (Vieira)

The same survey also showed that an increasing number of people are enjoying more freedom in their shopping. It is reported that 49 per cent of respondents believe having the products of multinational companies available to purchase is a "good thing," while 17 per cent believe it is a "bad thing" and 33 per cent are indifferent. (Vieira)

While consumers may not be in agreement on their stance on the issue, many of them are enjoying the benefits of greater product choice it results in.

It is also argued that the benefits to society are great. Micklethwait and Wooldridge argue for free trade saying that, "globalization is not something that that has a positive effect only...

They refute this belief, instead suggesting that globalization simply opens up markets, "globalization opens new opportunities for the entrepreneur from any village, and country and any culture to engage in business across town or across the world." (Wharton)
The Global Issues web site provides a thorough explanation of the arguments against free trade. The document lists five of the major concerns and criticisms of free trade (Shah). These include:

Increasing corporate power.

The effect on the environment.

The fact that decision-making is taken away from governments and given to corporations.

Decreasing job stability.

The belief that only the wealthy nations will benefit.

The corporate power argument and the decision-making argument are linked together. Micklethwait and Wooldridge recognize these issues where they say, "but companies and government must have a responsibility that goes beyond pumping up the bottom line or fattening top management pockets." (Wharton)

The benefit then of a free trade agreement is that this 'responsibility' becomes a 'necessity.' It is not done because of either a governments or an organizations good will, it is done because a signed agreement has been entered into that requires fairness.

President Bush also makes this same point, where he says, "it is in our nation's interest that China adhere to the rules of the World Trade Organization." (Savadove)

In this way, we can see that a real global system with agreements between nations and governments actually allows the system to be…

Sources used in this document:
BIBLIOGRAPHY

Light, Julie. "La Linea: NAFTA, Justice, and the U.S.-Mexico Border." Corporate Watch. June, 1999.

Savadove, Bill. Bush urges China to enforce WTO rules, free trade. Reuters News Service. February 21, 2002.

Shah, Anup. Criticisms of Current Forms of Free Trade. Global Issues. November 18, 2001.

<http://www.globalissues.org/TradeRelated/FreeTrade.asp>
Wharton School of the University of Pennsylvania. The challenges and promise of globalization. CNET News.com. July 1, 2000. <http://news.com.com/2100-1017-242576.html>
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