In this respects, each countries specializes in the production of good or services that are relatively economical and cheaper to produce then exchange their surplus with those of other countries with resources for the production of the alternatives. One of such trade groupings is the European Union (EU). The EU was formed with the aim of coordinating and regulating then economic and trading activities of the main European countries. Through this agency, all the trading and economic activities of the member countries are regulated by this body. This body was formed to oversee the leading economic growth and development of Europe.
However, the formation of this body has impacted on the economic and industrial performance of many countries within Europe. Even with the growth and growth potential in Europe, the formation of this trade regulatory body has negatively affected the infant industries of the developing countries in Europe, with no economic bargaining power. This has limited their growth and trade development potential. Free trade refers to a government policy that helps to avoid discrimination against imports or any kind of interference with imports through application of tariffs to (imports) and/or subsidies to (exports). It aims at getting rid of unfair trade barriers in the global market plus aims at helping to raise the economy in both developed and developing countries. Free trade has highly devastated European industries and jobs at large.
Free trade leads to adverse working conditions. ...Show more