This debate never fails to be a furious one.

it is accepted by many acknowledged economics circlesdeveloped economies advantage from free trade.

Reducing trade barriers decreases costs and stimulates long-term productivity growth.

There are, however, some of the undeniable pitfalls of free trade.

Protectionists contend that free trade can incentivize foreign currency manipulation and mercantilism.

Trade negotiations of the Transatlantic Trade and Investment Partnership (TTIP) and The Trans-Pacific Partnership (TTP) trade deals have provided more fuel to the fire of this ongoing debate.

Free Trade Argument

classical pro-free trade argument cites the benefits of the increased competition and specialization that free

trade brings.

lower prices/co

sts

more variety of goods

higher qualit

y of goods

These factors increase productivity growth and living standards.

Trade barriers can

cause conflict

between countries

and lead to fearsome

trade wars that destroy the potential

for mutual benefits

from trade, and also

spark the possibility of

military conflict.

Protectionist Argument

Protectionists argue that a free trade policy incentivizes the countries

So it trades with to practice mercantilism and manipulate their currencies in order to maintain this

positive balance of trade.

Perhaps, China is doing this very thing.

I incline more toward the free trade view,

however I do feel that the danger of different nations manipulating

currencies and accumulating large foreign monetary

reserves should not be ignored.

BYBYM V S SAI HEMANTM V S SAI HEMANT

BBA FOREIGN TRADE BBA FOREIGN TRADE UPES ,DEHRADUNUPES ,DEHRADUNUTTARAKHAND, INDIAUTTARAKHAND, INDIA