CheckPoint: International Trade Debate Part II Debate a classmate’s position to Part 1 of the Checkpoint. Your instructor will post a classmate’s response in your individual forum on Day 4. Write a 200-300 word essay arguing the opposite position of your classmate. Use suggestions from Part I to guide your responses. Post your essay as a Microsoft© attachment in your Individual Forum Some additional information: You may use additional research materials from either the school library or the web to support your points. Remember to document your resources in the proper APA style and be sure to complete all parts of this assignment.
For Unrestricted International Trade Imagine going to the grocery store to purchase apples and only having one type of apple from which to choose. Imagine the price of that apple being
expensive that very few people could actually afford to buy one. Such a scenario would be a world without international free trade. Unrestricted international free trade benefits the economies of all countries worldwide.
In the apple scenario, one could argue the reason for only having one option is because the person who produced the apple was not very good at it. Someone else may argue that the reason the apple costs so much was because the cost to produce the apple was high. Comparative advantage reflects the relative opportunity cost-what the producer give up in order to produce the apples (Mankiw 2004). If the opportunity cost is too high, it limits the outcome and increases the prices. International free trade eliminates such scenarios altogether because it encourages countries to produce and manufacture things they are good at and in ways that are most efficient.
Less developed countries often have limited technological and monetary resources, but still have the capabilities of manufacturing goods. Most often, these goods are of "lesser value," such as clothing and shoes. Not only does international free trade give these less developed countries opportunities to generate revenue for their economies, but it also allows the more developed countries (including the United States) to use resources producing more advanced goods that command higher prices. Less time could be spent making shoes and more time making medicines or advanced technology products.
The World Trade Organization (WTO) plays an important role in international trade. The main functions of the WTO are:
Administering WTO trade agreements
Forum for trade negotiations
Handling trade disputes
Monitoring national trade policies
Technical assistance and training for developing countries
Cooperation with other international organizations.
The WTO helps keep the peace between countries when it comes to trading. It reinforces trust and builds confidence among the governments, which results in healthy trading. With the support of the WTO and the cooperation of interested countries, international free trade is what drives the economy around the world.