How to trade world markets?

10 POINTS! I need back up notes for this debate: Is free trade beneficial for all economies?

• I'm the AFFIRMATIVE team, so I supposedly support free trade. I need back up notes to go against the opposing team and they may talk about the following: (from --> http://hsc.csu.edu.au/economics/global_economy/tut7/Tutorial7.html) - With the removal of trade barriers, STRUCTURAL UNEMPLOYMENT may occur in the short term. This can impact upon large numbers of workers, their families and local economies. Often it can be difficult for these workers to find employment in growth industries and government assistance is necessary. - Increased domestic ECONOMIC INSTABILITY from international trade cycles, as economies become dependent on global markets. This means that businesses, employees and consumers are more vulnerable to downturns in the economies of our trading partners, eg. Recession in the USA leads to decreased demand for Australian exports, leading to falling export incomes, lower GDP, lower incomes, lower domestic demand and rising unemployment. - International markets are not a level playing field as countries with surplus products may DUMP them on world markets at below cost. Some efficient industries may find it difficult to compete for long periods under such conditions. - Developing or new industries may find it difficult to become established in a competitive environment with no short-term protection policies by governments, according to the infant industries argument. - Free trade can lead to POLLUTION and other environmental 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. - Pressure to increase protection during the GFC During the global financial crisis and recession of 2008-2009, the impact of falling employment meant that protection pressures started to rise in many countries. In New South Wales, for example, the state government was criticised for purchasing imported uniforms for police and firefighters at cheaper prices rather than purchasing Australian made uniforms from Australian companies. Similar pressures were faced by governments in the United States, Britain and other European countries.

• Answer:

  As you can see, the opposing arguments are correct - while free trade is _generally_ beneficial to both parties, it isn't _always_ beneficial to both. You also left out two other arguments for the opposing team: 1. Optimal tariffs - for large economies, there are tariff structures which are even more beneficial than free trade, so going from an optimal tariff structure to free trade loses: http://internationalecon.com/Trade/Tch90/T90-9.php http://www.princeton.edu/~ies/Fall06/LimaoPaper.pdf http://www.sgvs.ch/congress11/upload/p_45-526543.pdf 2. Natural Resource Curse - especially for a developing country, the presence of a natural resource (oil, timber, etc.) and the export of that resource in quantity often hurts the overall economy - often to the point of long term destruction http://en.wikipedia.org/wiki/Resource_curse But you also see it in developed countries too: http://en.wikipedia.org/wiki/Dutch_disease BTW, your link doesn't work.