FREE TRADE
Free trade is the economic activity of exchange of goods and
services between one country to another. Free trade is different from other forms of trade policy in
which the allocation of goods and services between trading countries is
determined by the artificial prices that may or may not reflect the true nature
of supply and demand. This artificial price is the result of protectionist
trade policies, which governments intervene in markets through the adjustment
of prices and supply restrictions. Such government intervention can increase
and decrease the cost of goods and services for both consumers and producers.
With free trade in a country, it will affect the economic system of the State. One example of the influence of free trade against Indonesian products in the domestic market is the creation of the tendency for people to prefer imported products rather than domestic products. Examples are bananas sun pride, Sunkist oranges, red apples, kiwi fruit, plum, etc. this is not a local product, but almost of Indonesian people prefer to buy it. So this is should be balanced in such a way that we consume imported products have the same benefits and quality and not lose for others, mainly for domestic products.
Except having a devastating effect, free trade also have a positive impact on society such as: citizens / people of Indonesia can enjoy the imported products at an affordable price, and can also increase foreign exchange, and for the producers who have a strong mental effort, they will feel overwhelmed by and raced to further improve the quality of goods produced in order to have a competitiveness with imports. Thus, the producers will survive in the economic activity on free trade and trade balance will remain stable state. But still a few manufacturers that have these mental.
Obviously we do not have to worry about a free trade area fanaticism raises domestic production. but if the negative things are not addressed wisely by the government, Indonesia will experience many losses. It is like the increasing of Indonesian people who become unemployed because their businesses are unable to compete. Many factories are bankrupt, flight of investors (local and foreign) and depleted foreign exchange (more imports than exports), the local industry in Indonesia will be out of business. All were caused by people who are not prepared mentally to follow with the flow of free trade.
We cannot shut our self to the free market that has become the world governing discourse rich countries. We could not refuse because we can be isolated. Therefore, we must mentally prepare from now to face the consequences. we are still stuck with a vague perception of accuracy and reliability of perception. For example someone buys an item for well-known image or brand goods and mostly used to enhance the social status in society. Or someone with a particular economic circumstances prefer to buy dairy products are much less expensive foreign-made with quality that has not been determined and the risk of consumer harm. therefore, please love the products from our country.
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