Free Trade and Me

The debate is still on. Is Free Trade doing us any good? Should the government protect their own, give it ample support. Allow its muscle to grow bigger and stronger, before it faces the big boys who were always in the look out for the blue ocean-where there is no tariff and restrictions to protect the small fishes. The sharks are always lurking, ready to swallow the over matched competitors.


This is the classic tension. Generally, economist (in the western hemisphere) agrees that free trade is better. The onslaught of the Chinese products, and Indian services, though, have them on the defensive. Free trade is once again being questioned,....because they are losing the competition.

Free trade is often viewed as the fight of the small versus the big. The small countries who dreams of cornering its own share of the global pie, and the big who says their economy of scale provides cheaper and better quality products. This competition between the old dominant player and new kid in the block is actually a major price determinant. It indicates that the global pie is not growing, or the dominant economic model is flawed.

Another consideration is the tension between the consumer and the producer. As an end consumer, I would always favor free trade, because I have the choice where I will find the cheaper product or the dearer but reliable alternative. (tbc)

(ihavetogo...)