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trade many jobs have been created in Australia, especially in manufacturing and service
industries, which can absorb the unemployment, created through restructuring as firms
close down or downsize their workforce. When tariffs were increased substantially in the
period 19741984 for textiles and footwear - employment in the sector actually fell by 50
000, adding to overall unemployment. [2] You have to be a person with a lot of resources
(rich person) to survive in a free trade.
The Economic growth is increase in development countries and decrease in the third
world countries. The countries involved in free trade experience rising living standards,
increased real incomes and higher rates of economic growth. This is created by more
competitive industries, increased productivity, and efficiency and production levels. [2]
However its not real because countries like ours cant buy or create a huge industry to
compete.
International trade does not always amount to blessings. It has certain drawbacks
also such as the import of harmful goods foreign trade may lead to import of harmful goods
like cigarettes, drugs etc. This may run the health of the residents of the country. E.g. the
people of China suffered greatly through opium imports. [3]
This type of trade may exhaust resources. International trade leads to intensive
cultivation of land. Thus it has the operations of law of diminishing returns in agricultural
countries. It also makes a nation poor by giving too much burden over the resources. [3]
Not only create an economic dependence on development countries, also it creates
danger of Starvation. A country might depend for her food mainly on foreign countries. In
times of war there is a serious danger of starvation for such countries. One country may
gain at the expensive of another. One of the serious drawbacks of foreign trade is that one
country may gain at the expense of other due to certain accidental advantages. [3]
It may lead to war. Foreign trade may lead to war different countries compete with
each other in finding out new markets and sources of raw material for their industries and
frequently come into clash. This was one of the causes of first and Second World War. [3]
REFERENCES
[1] mg_20080717.pdf. . Advantages and Disadvantages of free trade.
[2] HSC Online - Free trade and protection: advantages and disadvantages of free trade.
[Online]. Available:
http://www.hsc.csu.edu.au/economics/global_economy/tut7/Tutorial7.html. [Accessed:
09-jul-2012].
[3] Advantages and Disadvantages of International Trade | guesspapers.net. [Online].
Available: http://www.guesspapers.net/1593/advantages-and-disadvantages-ofinternational-trade/. [Accessed: 09-jul-2012].