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Free trade

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Free trade

Category: Research Paper

Subcategory: Economics

Level: College

Pages: 1

Words: 275

Free trade
Student’s name
Institution
Introduction
Free trade is a form of trading policy that allows member countries to conduct business without government interference. In most cases, the companies involved in the trade are privately owned by people who have made choices to produce specific goods (Froning, 2000). Free trade has many benefits that lead to making revenue for the country and wealth for company owners. The wealth and revenue are created through specialization, reduced tariffs, innovations that attract other nations to engage in business and may others.
Free trade fosters innovation and allows member states to produce goods in a competition. Each state would like to sell more of their goods to the other state; this will lead to the production of high-quality goods. These trade will create a variety for citizens to choose at competitive prices, which leads to improved life standards. Life standards of a country’s citizens are among markers of a country wealth (Froning, 2000). With innovation, more goods and services of technology are created. Medical technologies have contributed to reduced costs of meeting healthcare needs. The quality of health care has improved, and this are factors that contribute to a stable economy.
Free trade creates opportunities for American companies, by creating a large market for produced goods hence increasing profit margin. From the colossal profits, privates may choose to expand their operation to differen…

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