Free trade-3

Place of Origin
Type of Product
Product
Made in
Food
Meat
China
Food
Rice
China
Food
Vegetables
China
Food
Bread
China
Food
Milk
China
Auto
Cars
China
Auto
Bus
China
Housewares
Television
China
Housewares
Refrigerator
China
Electronics
Phone
China
Electronics
Computer
China
Clothing
Shoes
China
Clothing
Shirts
China
Stationary
Books
China
Stationary
Pen
China
Other
Bed
China
Other
Perfume
France
Other
Alcohol
China
Other
Drugs
USA
Other
Shoerack
China
1. What does the chart tell you about the things you buy?
Most of the consumer products I purchase are made locally in China. Consumer foodstuff is
bought locally as it is perceived to be fresher and not to have been preserved using chemicals
thus healthier. Most other products are produced domestically as China is the world’s largest
manufacturer due to their abundance of labour and factories and also their subsidies on
companies and general government policy towards industries. For products such as perfume
Chinese people are not users of perfume with fewer than 5% of the total population using
fragrance as compared to 60% in the USA. Most fragrances are bought as gifts thus the need for
popular brands such as Chanel from France. Most pharmaceutical drugs are imports from the
USA. This is because of America’s leading research in the field of medicine and their mass
development of drugs. Other goods such as furniture are mostly manufactured locally. The table
shows that my consumption patterns are synonymous to those of a regular Chinese citizen as
most of the products I use are basic consumer items and are locally manufactured.
2. Given your purchasing patterns, to what extent do you think that you are a beneficiary of
free trade?
Free trade agreements enable imports to be cheap and affordable to people by levying taxes and
tariffs that would have otherwise been passed on to the final consumer to ensure that the
companies get their profit. China being a dominant economic powerhouse has made free trade
agreements with many countries, especially in Africa and in the East, to facilitate better trade.
This has made the price of relatively basic needs for citizens such as drugs more affordable. With
the world’s largest population, China is susceptible to diseases, especially communicable ones,
making it a ready market for global pharmaceutical companies. Use of free trade agreements is
an easy method of ensuring that citizens get affordable and high quality medicine.
The government doesn’t prioritize including products such as fragrances and luxury automobiles
that are often not produced in China in their free trade agreements. This is because these
economic agreements will more often than not put them at a disadvantage having to give more
than they receive from the trade deals. This is because not many people purchase these products
and as such few imports of these goods do not necessarily weaken the country’s balance of trade.
This also works as an effective method to prevent ostentatious spending by citizens as they are
more likely to defer from buying this products as a result of their high prices.
Free trade also benefits us indirectly in that by joining free trade agreements with other countries
that encourages us to export our economy grows. This in turn affects local industries such as
agriculture and the automobile and electronic industries. The government is able to offer
subsidies, tax reliefs and levies to these industries as a result of its steady and successful
economy. This enables local producers to price their products cheaply and to ensure a constant
supply.
Free trade has proven to improve competition thus improving the quality of goods produced in
the country. This is an obvious advantage to the everyday consumer as he is able to get more
quality for the same price. This is because free trade requires countries to adjust to international
requirements in the marketplace. If a country is not open to trade with other countries its
industries will be complacent and may produce substandard goods as they as a result of relative
monopoly power in that there is no flow of goods from other countries. This effect has been felt
predominantly in the automobile and electronics and technology industry. Powerhouses like
USA and China’s neighbor Japan have consistently pushed China into improving the quality of
their products by exporting similar products into China’s market.
3. Do you feel that trade benefits you so much that trade restrictions would be intolerable?
The effect of trade restrictions, mostly positive, is clearly evident and goes a long way in
ensuring products remain cheap and affordable. Being in China, one of the world’s leading
countries in terms of economic strength, these effects do not necessarily play a big impact on the
price and presence of goods. This is evidenced by the fact that many of the goods I purchase are
manufactured locally and most of the imported products are luxury products. In cases of products
such as drugs, the government has identified the lack of sufficient pharmaceutical companies and
has set policies that will enable China to improve their pharmaceutical industry thus providing
cheap and affordable drugs to its citizens.
In conclusion, China is not heavily reliant on free trade as it is able to sustain its citizen’s basic
needs using innovative means and by integrating technology into every sector.

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