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Changes And Continuities Of Free Trade

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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, less economic growth, local dependencies, poor standards of living for developing countries, and widening 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. This has led to the emergence …show more content…

In addition, free trade encourages developed countries to further increase their production of manufactured goods to sell them to developing countries, resulting in proliferated industrialization and economic growth. This has boosted the gross domestic product of developed countries and increased their purchasing power capita. This money can be spent to further improve the standards of living in developed countries. As well, free trade has escalated the competition amongst countries, which has inspired progress and innovation in various areas, hence providing more job opportunities and reducing unemployment. All of this has brought a lot of benefits and opportunities for developed countries, leading to their further development. (Benefits of Free Trade) As a case in point, the free trade agreement between Jordan and the US allowed US companies to outsource production of apparel to Jordan at low cost, thus becoming more competitive, bettering their standards of living, providing more job opportunities and focusing on other aspects of their business, such as innovation and …show more content…

Meanwhile, forcing restrictions on trade can deprive such benefits from all. Furthermore, free trade enhances the development of countries, which reduces the development gaps that exist in our current world, leading to a fairer and more developed world. However, and while free trade offers many socioeconomic and political benefits for developed and developing countries, it may also have some possible threats on the society and economy of countries. As well, free trade is a relatively recent trend, and its long-term implications are yet to be fully validated and identified through sufficient economic and analytical

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