EU - Free Trade (Lesson)
Free Trade
Introduction
Trade has changed throughout Georgia’s history, but it has remained an important part of the Georgian economy. The concept of free trade is trade that is unrestricted by tariffs or other barriers. Free trade offers consumers a wide range of choices for products and these open markets often lead to a higher standard of living. Georgia participates in trade with agriculture and manufacturing products through our key transportation cities of Atlanta, Savannah, and Brunswick.
What is Trade?
Trade is the act of buying and selling goods.
- Free trade occurs when nations agree to trade with each other without charging tariffs.
- Free Trade makes foreign products available to consumers.
- It also allows industries to use their resources for production and import what they cannot produce cheaply.
Georgia's Role in World Trade
Agriculture: Georgia exports poultry, cotton, tobacco, peanuts, and numerous other items to international markets. Gold Kist is the nation’s second largest poultry company producing millions of chickens per week for consumers in the United States and Internationally. This key company is located in Georgia.
Manufacturing: Georgia is home to numerous international industries that range in soft drinks, transportation equipment, forest products and carpet products.
Key Georgia Manufacturing Companies:
- Coca-Cola Company: One of the world’s most recognizable products sees 70% of its earnings coming from outside of the United States.
- Shaw Industries: Located in Dalton, Georgia, it is the world’s largest carpet manufacturer.
- Lockheed-Martin: Located in Marietta, Georgia, it manufactures C-130 airplanes for the entire world.
- Georgia-Pacific: This Georgian company is the worldwide supplier of forest products.
Transportation:
Delta Airlines and United Parcel Service (UPS) are both based in Atlanta, Georgia. They move people and cargo around the world daily. Savannah and Brunswick also contribute to the international shipping.
Review
Review what you've learned by completing the activity below.
Free trade helps the world connect by providing global products to numerous markets. This concept of trade allows consumers to be able to purchase materials that are not readily available to them. Georgia has several key companies that compete on the global market. Georgia also plays a key role in shipping foreign products across the United States by our key seaports and international airport. Georgia is a vital state to contributing to the economic well-being of the United States.
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