The Advantages Of Free Trade

Free trade helps communication and bolsters the exchange between different corporations leading to more co-operation and innovation which has resulted in much more innovative products which are helping to combat climate change. Researchers widely agree that trade is responsible for more than 75% of technology transfers. It is similar to the approach of multi-national corporations (MNC 's), where technological expertise is exported to the host country to increase production and efficiency. The co-operation between corporations tend to emphasize on more environmentally friendly production methods leading to better and more eco-friendly goods to be produced. Another possible way of looking at it is the increased transfer of modern (and thus cleaner)

Free trade encourages production where it is environmentally friendly. Going with the trend of maximizing efficiency, companies tend to produce where it is the least resource-intensive, or where the least amount of resources would be required to operate or utilize the plant. For example, a wind power plant would be built where there is an abundance of wind. Trade based on comparative advantage results in countries specializing in the production and trade of those goods that the country is relatively efficient at producing. Similarly, companies look to produce in places which are most environmentally appropriate, due to increasing awareness regarding climate change which could cause a backlash from customers if the company 's production methods are harming the environment. A recent example of this phenomenon would be the success of the Body Shop, which markets itself as a company that does no animal testing, which has helped its brand recognition

The idea is that, when countries employ protectionist measures, they are not working to their capacities, which causes economic leakage and underutilization of resources. In addition to that, they use old technology which is harmful to the environment. An example of that would be brick kilns in the subcontinent, which use low quality coal as fuel for their ovens. Also, the continued use of trains run by coal in that area is of grave concern, since coal immensely hurts the environment. Another example is the Common Agricultural Policy (CAP), of the European Union. "The European Common Agriculture Policy results in overproduction of many goods, lowering the amount that developing country producers of these goods receive. The fact that such subsidies also encourage overuse of marginal land, drainage of wetlands, destruction of hedges and overuse of pesticides and fertilisers, makes them doubly heinous." ("The argument for free trade". BBC. February 12,