The Environment Effects of Free Trade

- weakening of national environmental standards if free trade prevent imposition of those

standards on imported good
- Some of the countries lower down or waive their existing environmental laws in order to attract
more of the countries invest in their countries
- If competitive advantage derives largely from differences in environmental regulation, then the
composition effect of free trade will damaging to the environment.
- Increase in international transport will cause the world's nitrogen oxide emissions from fossil
fuels increase, all of these can come from trucks, cars and others transport vehicles. From this,
free trade will only exacerbate further greenhouse and other pollution caused by international
transport. Increased air pollution from transportation significantly wills effects on air quality and
human health

Free Trade Increased Unemployment

- harmful toward to the local manufacturer and benefits to foreign investors
- trigger a restructuring of economic activity
- manufacturers cannot compete with such low wage rates. As to stay their business operating,
some of the valuable businesses have to resort to outsourcing to survive.
- developing or infant industries may face structural unemployment, it is because for these
industries may difficult to placed themself in a competitive market
- Structural unemployment will occur when the industries decline because of the long-term
changes in market condition, and this situation happen when globalization is increasing. From the
free trade, it rise of new low cost oversea competitor countries and it increased competition
within the domestic industries.
- the greater are the gains from trade, the steeper will be the opposition to globalization as
subsequent rise in equilibrium unemployment will be sharper.

Increase the complexity of the international trading system

- Some of the country not encourage free trade is because there had limited or no understanding
of free trade toward to them.
- According to the International Business Times (2014), total 800 senior executives from 800
campanies in Australia, China, Hong Kong, India, Indonesia, Malaysia, Singapore and Vietnam
were quizzed. From this, 40% of country had limited or no understanding of free trade while 50%
said they want to know more but feel there is not enough transparency around them.
- operation of the companies anywhere in the world is in different operation system and rules and
regulations.
- . If a company is not able to predict and respond quickly, it may find itself in an uncompetitive
region in terms of labor or tariffs.
- Different countries have different of their cultural, rules and regulation.
-complicated rules of origin ( different rules negotiated under different agreements )
- uncertainty of political actions, war, and national program that can dispute business operations
(Daniels,2009). In additional,
-fluct

Comparison between advantages and disadvantages of free trade

-

Bring the countries to the wealthier and benefit to the citizen which stimulated of economic
growth.
Acquire advantage by elimination of trade restriction with their trading partners.
created more effective economic growth
shared of the technology knowledge
raising the industries production level
cost of operation will become lower and then push up the output

uation in exchange rates