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Impact of free trade on the world

by Lam Luu

Created on: June 10, 2007

Free Trade has always been preached as the most important way to achieve common goods as well as economic goals. It has been said to strengthen competitions, which leads to efficiency, and forced people to work. However, most of those things are just lies.

First of all, Free Trade does not encourage competitions. In a macro view, competitions are killed by Free Trade. Remember, in order to achieve efficiency, firms must mass-procedure. In order to mass produce, the size of the firms must be large. Because of the large size of each firm, the number of firms in an industry, in order to have efficiency in that industry, must be limited. Therefore, Free Trade, which called for no regulation from the Government, gives those large firms best chance to cheat and prevent competitions. Those firms use techniques like trust, temporary lowering prices to keep others from joining the industry. After a period of killing opponent, those firms will raise prices to get more profit. Furthermore, as there are more ways to increase sales than just purely increasing productivity, the large firms, with no regulation, will use lies and tries to control to the public power to sell more to the people. In micro view, Free Trade indeed encourages competitions. However, there is only one kind of competition is favored: Money. In a Free Trade environment, people do not compete for the gain of knowledge, ideas, or things in that nature. They are forced to compete purely for money. Therefore, people estrange themselves from their friends, their co-workers, and become extremely selfish. Yes, people are indeed encouraged to "approach" others. However, the reason behind such nice actions is nothing but strengthen their position in their work place. People begin to lie to get promotion. Alienation is born by nothing but Free Trade.

Furthermore, Free Trade does not force everybody to work. In a work place, the workers are forced to work extremely hard, to estrange themselves and to lie to their friends to bring profit to their employers. From the work of the worker, if that worker earns one, the employer will earn two or more. Therefore, only a large part of the Society, who has little or no property, are forced to work. The other part, the haves and have-mores, possess the privilege of enjoying others' work. Of course, if a brilliant man does earn his own factory, maybe it is his right to enjoy such a privilege. However, how about his children, who have never been in the workforce? Furthermore,

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