Advantages And Disadvantages Of Free Trade

790 Words4 Pages
In a typical fair trade environment, merchants and trading organizations had to confront numerous barriers imposed by the government before they were allowed to trade their products. This resulted in minimal trade, lack of economic growth, local dependencies, poor international relations, poor standards of living for Less Economic Developed Countries (LEDC’s), and huge development gaps. However, this all changed after the introduction of free trade, which is the form of trade that doesn’t impose restrictions such as quotas or tariffs. Free trade has facilitated the spread of globalization across the world and dismantled barriers that existed previously such that now a business can easily and freely sell a global product to a global customer in a global market. Free trade has lead to the emergence of transnational corporations (TNCs) that has presence in multiple countries, selling across the globe, and leveraging the benefits of free trade. Free trade has a multitude of socioeconomic benefits and opportunities for both developed and developing countries. From the developing countries’ perspective, free trade has had many advantageous returns on the socioeconomic and political aspects. Free trade has allowed for maximized trade amongst countries, generating increased access to manufactured goods for developing countries with limited industrialization. Free trade for developing countries has improved their PPP (purchasing power capita, which is how much a fixed amount of
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