Free Trade

Free Trade in Indonesia

Each country carry out the trade with other country to satisfy their requirements, because all of this country have the different requirements that could not be satisfied by themselves. Sell things abroad called export, while buy goods from abroad called import.

When we go to the market, usually we find many import things which shown in every shop there. Many buyers prefer to buy the import things to the local things. In their opinion, import things has a better quality than the domestic products. If that’s true, so what about the local products then?

Long time a go, to export and import things had rules and the tax that were put into effect also very high. Everyone can not free to sell or buy something from overseas. The world is becoming more globalized, thre is no doubt about that. While that sounds promising, the current form of globalization, free trade, and open markets are coming under much critism. Now a days, many peoples wanted free trade so that everyone can get their right to sell or buy anything they want. With this free trade, the buyers have many choices to buy a quality things or the cheapest things.

2010 was the beginning of the free trade era. Free trade is a system of trade policy that allows traders to act and or transact without interference from government . Free trade implies the following features such as trade of goods without taxes including tariffs or other trade barriers, the absence of trade-distorting policies such as taxes, subsidies, reulatons, or laws that give some firms, household, or factors of production an advantages over others, free access to markets, free access to market information, inability of firms to distort markets through government imposed monopoly power, the free movement of labor between and within countries, and also the free movement of capital between and within countries.

With the free trade there are many import things that entered to Indonesia. Anyone had the right to sell or buy the things inter-country. But, free trade has very big impact against the Indonesian businessmen. Many businessmen which their products more uncompetitive than import products will bankrupt. Only the big company which can stay in this free trade era. With the such treats, businessmen has urged to increase their product quality.

Anyway the existence of this free trade increasingly will facilitate the domestic businessmen to market their products overseas and to motivate them to increase the quality of their products. So that products of domestic businessmen can compete with the import products.

Maybe free trade will affect local companies performance but it can not be avoided because it was agreed on a long time a go so that we have to abide by it. But all of this depend on the customers. The Indonesian customers better more choose to use the domestic product instead, because our products also have the best quality than others. By buying our domestic product can also promote our nation, so that the Indonesian businessmen can stay exist in this free trade competition era.