Introduction
Before discussing the benefits and drawbacks of free trade, I would like to explain the meaning of “free trade”. Free trade is a trade where countries carries out economic activities without restrictions or barrier such as import and export tariffs, barrier to market entry and policies.
There are several main features of free trade.These main features are the benefits of free trade,as for me:
Free movement of labour and capital among countries. Free movement of labour and capital across countries and regions ensure that countries under the trade treaties are able to acquire the necessary factors of production for their businesses that will help them to improve their productivity and output.
For example, Germany faced with labour lacking problems, while Italy had high level of unemployment. By free trade, Italy and Germany could benefit from each other.
Free access to foreign markets.
Free access ensures the increased economic growth. By statistics, NAFTA increased United …show more content…
For example, China is one of the developed countries that have achieved its developments through taking advantage of free trade to attract investors to its country and it investing in small countries such as those in Latin America thus boosting its developments. Although free trade has been attributed by negative impacts on small developing countries, positive impact surpasses the negative one and thus contributing to most of developments in the small countries. Therefore, based on my opinion, I think that free trade has positively impacted to developing countries as it has stimulated their economic development goals such as millennium development goals. Hence free trade has been a realistic aspect to developing
Before discussing the benefits and drawbacks of free trade, I would like to explain the meaning of “free trade”. Free trade is a trade where countries carries out economic activities without restrictions or barrier such as import and export tariffs, barrier to market entry and policies.
There are several main features of free trade.These main features are the benefits of free trade,as for me:
Free movement of labour and capital among countries. Free movement of labour and capital across countries and regions ensure that countries under the trade treaties are able to acquire the necessary factors of production for their businesses that will help them to improve their productivity and output.
For example, Germany faced with labour lacking problems, while Italy had high level of unemployment. By free trade, Italy and Germany could benefit from each other.
Free access to foreign markets.
Free access ensures the increased economic growth. By statistics, NAFTA increased United …show more content…
For example, China is one of the developed countries that have achieved its developments through taking advantage of free trade to attract investors to its country and it investing in small countries such as those in Latin America thus boosting its developments. Although free trade has been attributed by negative impacts on small developing countries, positive impact surpasses the negative one and thus contributing to most of developments in the small countries. Therefore, based on my opinion, I think that free trade has positively impacted to developing countries as it has stimulated their economic development goals such as millennium development goals. Hence free trade has been a realistic aspect to developing