The Benefits & Disadvantages of Free International Trade for the United States

Today, the US economy comprises an integral part of the global economy and one of the major markets in the world. Free international trade is the major driver and tool of the integration of the US into the global economy. However, free international trade has quite controversial effects on the US. On the one hand, free international trade stimulates the rise of business activities in the US and enhances the position of large multinational corporations based in the US because free trade agreements open new markets for them. On the other hand, free international trade raised the problem of outsourcing and large scale layoffs that affect many employees in the US, who lose their jobs because US-based companies move their production and outsource many services which are supplied by companies in developing countries or emerging economies like China or Mexico. Nevertheless, the overall effect of free trade on the US economy is positive because free trade contributes to the growth of the US economy and opens new markets for US-based companies.

Free international trade allowed American companies to operate virtually worldwide. They laid off many employees by moving the production abroad but they outsourced or moved the production which did not require highly qualified labor force. Instead, American companies enhanced and accelerated their development in knowledge-based industries which became the major concern for American businesses. For example, car assembling is a highly automated process that may be performed virtually anywhere and where the qualification of the labor force is not very high because workers perform simple, mechanical, routine processes. Instead, the creation of microprocessors, or semiconductors used in those cars, or the development of software, or complex technological solutions like GPS-tracking, or whatsoever that requires the high qualification became the priority for US-based companies. As a result, American companies and economy became stronger because they moved low-qualified jobs and production abroad and enhanced knowledge-based industries in the US. Hence, American companies and economy enhanced their position in the world economy that is beneficial for the US.

References:

Hill, C.W. L. and Hult, G. T. M. (2014). International Business: Competing in the Global Marketplace, 11th Edition. New York: McGraw Hill Education.

The terms offer and acceptance. (2016, May 17). Retrieved from

[Accessed: January 20, 2022]

"The terms offer and acceptance." freeessays.club, 17 May 2016.

[Accessed: January 20, 2022]

freeessays.club (2016) The terms offer and acceptance [Online].
Available at:

[Accessed: January 20, 2022]

"The terms offer and acceptance." freeessays.club, 17 May 2016

[Accessed: January 20, 2022]

"The terms offer and acceptance." freeessays.club, 17 May 2016

[Accessed: January 20, 2022]

"The terms offer and acceptance." freeessays.club, 17 May 2016

[Accessed: January 20, 2022]

"The terms offer and acceptance." freeessays.club, 17 May 2016

[Accessed: January 20, 2022]
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