our idea new number one reason that a sovereign state will join a super nationalist
organization in today's world is primarily based on tray that's right free trade
everybody wants to trade more make more money and boned jackie Moore stuff going
on absolutely and what government doesn't want the peoples and businesses its state to create more in work more rain and say all foreign trade more and buy orbit mall I yeah awesome I mean every government pretty much spends most of its time thinking about how to make its economy growing thriving get bigger year after year after year so it should come as no great shock that the international organizations based on trade are the ones that have really swallowed it in the last several decades and bikes bloated I mean there are more trade blocs than ever before and they're also more states that have joined the first rate box then ever before inhuman yesterday
hits from the hospital many cars were actually look at the growth a free-trade and the trade blocs
and say hey that is one of the primary reasons why the economies of the member states and the world economy as a whole has grown in the last several decades it's that big a deal it's made that the impact all because obvious free trade concept okay well let's talk about the concept just one second morning yes it's real tough stuff you heard of free trade a trillion times in a trade from places
I'll cover briefly here the whole car to free trade is that you want to eliminate as many barriers as possible between the businesses in people's of different countries to trade with each other as openly and freely as they can it scott free market capitalism free market capitalism and free trade really go hand in hand let people know actually do they're going to do business wise get the government out of the way and regulations on the way and therefore people will do what they do best they will streamline their businesses and they will make the best products they can at the cheapest prices they can and here's why that's important because when you have everybody doing what they do best at this must remind most efficient with the cheapest prices those cheap prices get passed onto the consumer eventually that's what you want because when consumers get the cheapest products that are best quality they will buy more of them eniac make a real example for you here but has your cheap as hell in America I what forty cents a pound and they've always been that way and people per eat the hell outta bananas they always happens in the morning fruit get
america's cheap as hell was good too but it's cheap as hell but what would happen if the price banana something with two hundred dollars a pound would you eat as much okay lol you never monkey around with a bad idea after I so expensive so when products are the cheapest a consumer the consumers will buy more and therefore this country they're coming from can sell more and everybody makes more money more money more money not for free trade is all about yeah so why would that happen naturally why would you have to join a free trade bloc to ensure that's going to happen what gets in the way a free-trade mostly governments I not taking away everything
I governments have a tendency to do a word you should know called up protectionism protectionism is when a government was to protect the industries and businesses of their state at the expense our businesses and industries another state now they would do this for lots of reasons I'm not going to go into your maybe it's time for the protector steel industry or maybe there's an industry that employs ten million people so they have to protect it so it doesn't go out of business because then you have ten million unemployed people in the government as
well that I'm not going to get into all the reasons I just want to get into two with the devices they have in order to do it so what are the two ways that a government can protect its own industries and this at the expense of free trade by the way this is the opposite a free-trade are now what they can put tariffs on imported goods yeah pretty straightforward terrace is just a fancy ass word for tax yes is real tough stuff so let have the real world example here I let's say the French produce what's what they do and that should make up the numbers would say bye love rent one cost a buck so they cost one dollar they can import all the French wine they want to you get on the walmart sell for a dollar now if the US gets really pissed at france which happens all the time are we could let me a tariff on that French wine a tax and he was gonna can say guess what every French well I'm comes in here because we don't have freedom fries are not french fries we're gonna pray five-dollar tariff on all your stuff so now that one dollar dollar French want people were buying last week for a buck is down gonna cost six dollars Wyo that's going to wow the impact the consumer who says I'm not provide it for six that's way too expensive about I'm done see how that works so the US can protect itself protect its economy and punish another copy if they want to buy levying a horrific tear or tax on imported goods now sometimes it's gone because countries are with each other they say to each other they make a political point that they use a tariff but oftentimes is to protect local industries let's say the US wind industry couldn't compete as well with the French is the friend he's been a lot
longer they drink a lot more they're all drunk so the US industries got is good and it would cost like
two dollars or three dollars for four dollars for the US to make the same Allah Y well that tariff on the French wine also makes the US one is read more competitive that make sense because they're otherwise more expensive online now can compete with a six dollar Bala French what there's another way though that a government can pro tact its industries and businesses much better and that is something called subsidies the second way %uh protectionism the local business you the government of the state with help in a monetary way the businesses to thrive and succeed in their country at the expense other businesses from other countries and again this is mostly monetary and mostly happens in the agricultural sector by the way so the US grows hell tons of core and maybe try to produce corn cheaper all maybe Gattaca produced corn cheaper I mean they're way cheaper labor I wait cheaper cost so it seems feasible that got up could produce cheaper corning import the United States for cheaper well the US government wants to protect its corn industry that I we were keep those jobs and we think it's vital that we have our own agricultural sector so let's pretend make up some numbers again that a bushel of corn are in got a cost just a dollar to make and they can import a US for a dollar a bushel but the US grown corn may actually cost two or three dollars a bushel to make out managed just like the bananas the people gonna buy the cheaper one so they're gonna buy the cheap got a corner over the US Court it's the exact same core people can buy cheap what so US could put a tariff on the Ghana corn or they could give the US producers a subsidy basically give them money every year and say look we will make sure you guys name business and we like you or protect our economic interest here so we're going to give the EU two dollars and fifty cents a bushel for every muscle you produce 0 collabo now the american farmers can say cool we can now sell a disk of dust you know three bucks to produce a bushel the US government just gave us two dollars and fifty cents so now we can take our corner market in charge only 50 sets and we can out beat the got a corn even our own cost a dollar haha that's the beauty of subsidies that how they work helping out your local business in basically making it more competitive so it can compete with the importers I any businesses from other countries get now this again happens mostly in the agricultural sector in today's world is really pisses off less developed in poor countries because one of the things they do for cheaper is agricultural products but all the rich countries protect the hair farmers with the subsidies they are you tear so much as the subsidies get what I'm saying here
so all things being equal here be governments of states can use protectionism to protect their own industries artificially inflate prices for imports or artificially lower prices for stuff produced in their own country in order for those businesses to compete but that is the opposite a free trade and that is kinda going away we are in a free-trade air were free trade is really proliferate now there are been free trade pacts between countries forever okay and the TV with brisket together with the French cheese and say hey let's do this let's lower tariffs in your YouTube regulations in subsidies between our two countries so that everybody gets the cheaper products and we all they are buy more and sell more make more let's do that between our two countries that have it for a long time was kinda knew in today's world is that it's kind of grown up to that many many many countries all get into this trade bloc and say okay let's do this. Collectively let's set the rules let's wall signed up on a little charter we all agree to follow the rules we all have free trade with the regulations and subsidy between yourselves and everybody now in this block can produce the stuff that they produce the best for the cheapest sewing it cheap steel from this place in cheap cars in this place she corn from this place and we can export archie microchips or cheap garcía refrigerators and everybody wins everybody trade for that's the essence of the trade block the individual country to country trade bloc still exist by the way i any time there's a country whose not in the block that you're in but you still want it have some sort of relationship you can have a free trade pact country co