Author : Mega Indah Putri Utami 1801404251
With the free trade are usually aimed at the welfare of society and also expand trade throughout the State. Free trade can also have a positive impact and negative impact on the country involved. As in Indonesia also received the impacts of free trade. Free trade means the absence of government intervention which inhibits both trading activities undertaken by the inter-individual and inter-firms that exist in the countries. With a system of free trade is the trade between countries is no longer troubled by bureaucratic affairs. The idea of forming free trade is that international trade often obstructed by tax problems, a variety of additional costs, and many other obstacles.
At around the 1990s the countries in the Asia Pacific region initially welcomed the presence of free trade and eventually gave birth to the ASEAN Free Trade Area (AFTA) and the Asia-Pacific Economic Cooperation (APEC). The benefits of free trade which can be seen directly is the diversity of goods provided. Free trade also can enlarge and expand market coverage, and therefore it can increased productivity. And because of it, it will increased standard of living also citizens of a country. But among these benefits, the presence of the free market have difficulties for some countries, especially developing countries. Developing countries are usually difficult to compete to produce quality products with countries that are more advanced.
In addition, free trade also lead to dependency more than interdependence. Developed countries certainly can produce products with good quality that can not be produced by the developing countries. As Korea with a car and a handphone. Developing countries such as Indonesia, which has not been able to produce a car or a handphone whose quality is good and well-known as it has been produced by the Japanese, of just going to settle for consumers and ultimately become the consumptive state. By that, the small industries are not able to compete in the arena of free trade, it can be ascertained that the industries will be eliminated and insolvent. This could lead to other problems such as unemployment. So by that, why the existence of the free trade potential make it difficult for different parties especially for developing countries?
At around the 1990s the countries in the Asia Pacific region initially welcomed the presence of free trade and eventually gave birth to the ASEAN Free Trade Area (AFTA) and the Asia-Pacific Economic Cooperation (APEC). The benefits of free trade which can be seen directly is the diversity of goods provided. Free trade also can enlarge and expand market coverage, and therefore it can increased productivity. And because of it, it will increased standard of living also citizens of a country. But among these benefits, the presence of the free market have difficulties for some countries, especially developing countries. Developing countries are usually difficult to compete to produce quality products with countries that are more advanced.
In addition, free trade also lead to dependency more than interdependence. Developed countries certainly can produce products with good quality that can not be produced by the developing countries. As Korea with a car and a handphone. Developing countries such as Indonesia, which has not been able to produce a car or a handphone whose quality is good and well-known as it has been produced by the Japanese, of just going to settle for consumers and ultimately become the consumptive state. By that, the small industries are not able to compete in the arena of free trade, it can be ascertained that the industries will be eliminated and insolvent. This could lead to other problems such as unemployment. So by that, why the existence of the free trade potential make it difficult for different parties especially for developing countries?
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