Perdagangan Bebas
Dalam perdagangan internasional, perdagangan bebas merupakan bentuk ideal suatu pasar di mana perdagangan barang dan jasa antar negara masuk dan keluar dari suatu negara dengan bebas tanpa hambatan-hambatan perdagangan seperti tarif, bea masuk, dan lain-lain.

Perdagangan bebas merupakan:
- Perdagangan internasional dalam komoditi barang tanpa hambatan tarif seperti pajak impor atau hambatan perdagangan lainnya seperti kuota impor.
- Perdagangan internasional dalam jasa tanpa tarif atau hambatan perdagangan lainnya.
- Mobilitas tenaga kerja antar negara yang lebih bebas.
- Mobilitas modal yang bebas antar negara.
- The free movement of capital between countries
- Penghapusan kebijakan yang mendistorsi perdagangan seperti pajak, subsidi, undang-undang dan lain-lain yang diberikan kepada dunia usaha domestik, rumah tangga, atau faktor produksi yang menguntungkan suatu negara.
- Kebijakan pengaturan tentang hak cipta.
Keunggulan Mutlak (Absolute Advantage)
Teori keunggulan mutlak dikemukakan oleh Adam Smith (1776) dalam bukunya The Wealth of Nation. Adam Smith menganjurkan perdagangan bebas sebagai kebijakan yang mampu mendorong kemakmuran suatu negara. Dalam perdagangan bebas, setiap negara dapat menspesialisasikan diri dalam produksi komoditas yang memiliki keunggulan mutlak/absolut dan mengimpor komoditi yang memperoleh kerugian mutlak. Dengan spesialisasi, masing-masing negara dapat meningkatkan pertambahan produksi dunia yang dapat dimanfaatkan secara bersama-sama melalui perdagangan internasional. Jadi melalui perdagangan internasional yang berdasarkan keunggulan mutlak, masing-masing negara yang terlibat dalam perdagangan akan memperoleh keuntungan yang serentak melalui spesialisasi, bukan dari pengorbanan negara lain. Contoh: Indonesia dan India memproduksi dua jenis komoditi yaitu pakaian dan tas dengan asumsi (anggapan) masing-masing negara menggunakan 100 tenaga kerja untuk memproduksi kedua komoditi tersebut. 50 tenaga kerja untuk memproduksi pakaian dan 50 tenaga kerja untuk memproduksi tas. Hasil total produksi kedua negara tersebut yaitu:- Indonesia : pakaian 40 unit dan tas 20 unit
- India : pakaian 20 unit dan tas 30 unit
- Total : pakaian 60 unit dan tas 50 unit
- Indonesia : pakaian 80 unit dan tas 0 unit
- India : pakaian 0 unit dan tas 60 unit
- Total : pakaian 80 unit dan tas 60 unit
International Trade
- Natural resources are unevenly distributed over the earth. Different nations have different endowments on resources. The endowments would affect their production capacity and types of goods & services produced.
- Production depends on specialization. Specialization in turn encourages trade. It lowers the possibility of self-sufficiency and increases the level of mutual dependence among nations.
- International trade expands the size of the market. Once the market size is enlarged, there is more chance to specialize.
II. Difficulties of International Trade
- Many people argue that the developing nations face with an undesirable terms of trade ( the ratio of export price to import price ). The developed nations are simply capturing gains from them.
- Trade barriers hinders the development of international trade.
III. Economic Principle of International Trade
International trade is based on an important theory in economics. It is called the theory of comparative advantage. Absolute Advantage. A nation is said to have an absolute advantage in the production of a good if it can produce a greater quantity of the good than that of another nation, with the same amount of resources used or at the same cost.
- Comparative Advantage. When a nation has a lower opportunity cost in producing a good, it is said to have a comparative advantage in the production of that good.
- The theory states that if a nation specializes in the production of a good with a comparative advantage, i.e. a lower opportunity cost; more output can be produced provided that other nations do accordingly. Nations will gain if they exchange according to this principle, provided that the exchange ratio lies within their domestic cost ( with low or even zero transportation cost ).
IV. Trade Protection
Forms of Trade Protection / Barriers
- Tariffs. A tariff is an import tax levied by the importing nation. It will lead to revenue to the government.
- Import Quotas. Quota refers to a maximum amount of quantity set on imports within a time period. Both tariffs and quotas have similar effects on the prices & volume of imports. The effect of a tariff on imports depends on the price elasticity of demand for imports. The effect of a quota is more certain.
- Embargo. It is a complete prohibition of trade in general. A partial embargo refers to a prohibition of trade on certain selective commodities only.
Reasons for Trade Protection
- Infant Industry Argument. When a domestic industry just starts to grow, it is not strong enough to face foreign competition. It should be protected by the government to allow it to grow. The developing nations always use barriers during their early stage of industrialisation.
- Local Workers & Employment. A restriction of imports would encourage the local industries to survive. As a result, local firms would provide more employment opportunities to workers.
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