Disadvantages Of Free Trade

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The term free trade may be defined in various interpretations but fundamentally, free trade

refers to the free movement of goods, services, labor, and capital across national borders without

government-imposed economic and regulatory barriers.(Berkshire:2011) By having said that, free

trade would mean an easier access of trading, less complex restrictions on across-border trade,

bilateral or even multilateral cooperation, lower tariff on trade, products and technology exchange,

labor transfers, global market, and a robust economic competition for sure. Seeing how intense the

economic competition is, free trade would not go easy towards all countries. Those who have

sustainable and adequate capabilities may be able to endure and stand out in the competition arena.

Meanwhile, those with limited and narrow capabilities will find this free trade torturing because they

simply cannot compete with the more-advanced foreign markets.

Though this concept of free trade is often considered to be a policy which is profitable for

certain countries only (especially super power countries) and therefore results to inequality among

states, free trade is still no other than today‟s eminent policy among states, because basically, free

trade has been deemed as something inevitable and as an absolute consequence of the globalization.

However, free trade cannot guarantee a country to be rapidly developed and rich because every

country has different characteristics and
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