Expression écrite en anglais sur la Zone De Libre échange

Free Trade occurs when there are artificial barriers set up by government to restrict the flow of goods and services between trading nations

I think that Free Trade Zone has five major advantages.

It permits to increase production. Countries can specialise in the production of commodities in which they have a comparative advantages. With specialisation, countries are able to take advantage of efficiencies generated from economies of scale and increased out put.

Moreover international trade increases the size of a firm's market, resulting in lower average costs and increased productivity, ultimately leading to increased production.

Free trade improves the efficiency of exchanges of goods, and leads to higher national productivity of resources. Increased competition promotes innovative production methods, the use of the new technology, marketing and distribution methods.

Free trade also gives advantages to customers. Indeed, they benefit in the domestic economy as they now obtain a greater variety of goods and services.

Trade liberalisation creates loser and winners as ressources move to productive areas of the economy. Employment will increased in exporting industries and workers will be displaced where import competing industries fold in the competitive environment.

Last advantage is about economic grothw. Effectively the countries involved in free trade experience ring living standards, increased real incomes and higher rates of economic growth. This is created by more competitive industries , increased productivity, efficiency and production levels.

Althrough free trade has benefits , it also existx a few disadvantages.

In my opinion, with the removal of trade barriers, structural unemployement may occur in the short time. This can impact upon large numbers of workers, their families and local economic.

Increased domestic economic instability from international trade cycles as economic become dependent on global markets. This means that businesses, employees and consumers are more vulnerable to downturns in the economy of with trading partners.

At last free trade can lead to pollution and other environment problems as companies fail to include these costs in the price of goods in trying to compete with companies operating under weaker environmental legislation in some countries.

To conclude, free trade permits to increase the volume, power and profitability in commerce and international trade in relation to the productive sectors. Nevertheless the free exchange has negative effects at other levels as like pollution or unemployment.

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