Why would anyone want free trade?

[Al B. Sure!]

What are the benefits of a global economy?

By setting up tariff walls and what not in the United States, not only would we be improving American industry and keeping money in the US but more American jobs will be created instead of the Chinese taking American jobs... so why are both parties generally in favour of globalization?


thanks

[Nubclear]

Re: Why would anyone want free trade?

Originally posted by Albert Speer
thanks

Your welcome.

Bye

[DanS]

"Keeping money in the US" is a common misconception. The US Dollar is only legal tender in the US, which means that all the money we spend must come back to us in one way or another.

[monkspider]

i used to be against globalization, as it is blatant corporate imperialism. However, over time I have realized that Globalization is just a step in the evolution toward the elimination of nationalities and eventual world-wide socialism. So I now just accept it.

[Al B. Sure!]

DanS:

Not just bank notes but also credit and what not...

Take televisions for example... there is not a single American company building tvs and they are bought constantly. That's millions of American dollars a year going to Sony and Zenith. How can you possibly say that American money is staying in the country?

[DanS]

What does Sony and Zenith do with the US dollars that they receive? The US Dollar doesn't buy anything in Japan.

[Sandman]

You may not favour Chinese people over your own country.

[Q Classic]

Zenith? Zenith used to be an american company. then it was bought out by LG. so the money doesn't go to Zenith, it goes to LG, a korean concern.

the money that LG then gains goes to its expenses. some of it might even go towards taxes in skorea.

when skorea buys f16s from the united states, the almighty american dollar, after having been converted a few times, gets sent to the grand american company, lockheed martin.

[Agathon]

Answers:

Sensible people want free trade in situations in which it generates efficiency gains.

Lunatics want absolute free trade because they are market fundamentalists.

[KrazyHorse]

Originally posted by DanS
The US Dollar is only legal tender in the US

False.

[DanS]

You're right Frogger. But the exceptions prove the rule on this one.

[KrazyHorse]

The mighty economy of American Samoa will crush you!

[Thorn]

The arguement is this: Globalization leads to better standards of living for more people and at lower costs.

The problem is the US has become too dependant on the rest of the world, they no longer have the immediate ability to provide everything for themselves. We have seen how quickly the world turns against the United States... I'm all for isolationalism... who knows maybe Germany might Blitz the rest of the world again... hopefully.

[Japher]

Why a global economy? Why free trade?

I tend to think of it like Ford's assembly line, in that certain nations, countries, states, and regions can and do benefit from each other based on specialization. It is not about being dependent on each other more so about some one else being better at it.

Japan is definitly better a electronics because their economy focused on it. While the US is better at reaping our natural resources for export, as well as Agriculture. That got something that we want, and we have something that they need...

Another example; I work in the California Bay Area, why? Because I am in the biopharm. industry. The cities, poilitics, public works, etc. has all adapted to acccept us. Other areas are not so accepting. Yet, at the same tone, Texas produces most of energy, natural gases, and oils... Why? because they chose to develop in that industry based on their large amounts of natural resources...

Thus, it benefits Japan to trade with the US, as it does for Texas to trade with California. Would each state try to cover all bases the levels of efficiencies in each field would be significantly lower.

Also, hedge funds are fun!

[GePap]

Us money leave the US? crap.

The US is a giant global money vacuum. Direct foreign investment in the US is huge, and is one of the things that allows the US to maintian outrageously high foreign trade deficits. CNN Money said yesterday (will look for ther link) that between 1997 and 2002 Europe poured 1 Trillion, that a T and not a b, into the US economy.

So be thankful for free trade, since the US certainly gains more from it than some poor third wold country.

Edit: they removed the article...well, obviously someone will question it. Whatever.