The Idea And Operation Of Free Trade Essay - 1771 Words

The idea and operation of free trade has spurred economic growth for several countries around the world. This system of trading, first came about during the sixteenth century, by Spanish philosopher Francisco de Vitoria. In one of his various manuscripts, De Indis et de Ivre Belli Relectiones, Vitoria employs the word â€Å"right† to free trade (Gregg, 2009). By this, Vitoria meant the right to free trade came from the natural right of free association. From his understanding, free association was fundamental for human prosperity. He believed national boundaries limited people’s freedom to interact with one another, especially for economic reasons (Gregg, 2009). Trading among nations is an essential network, for both domestic and international gains. In free trade agreements, such as the North American Free Trade Agreement (NAFTA), sovereign states are able to import and export goods without tariff barriers and government intervention. Thus, facilitating trade between nations. Consumers could then purchase quality products at lower costs. Free trade also has the potential to boost globalization through the global interconnectedness. In order for free trade to work smoothly among nations, trade agreements are created to implement certain procedures and rules. For example, agreements might include the amount of exports allowed per country. Nations are always searching for ways to expand their economic growth, and by developing free trade compromises, they areShow MoreRelatedApec: Its Successes and Future Prospects1253 Words   |  6 Pagesof the region and some of the most dynamic, fastest growing economies in the world. Statistically, APEC members have a combined Gross Domestic Product of over $16 trillion and carry out 42% of world trade. Over the past few years, APECs role has grown in both depth and scope and now encompasses trade liberalization, business facilitation, economic and technical cooperation. 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