Free Trade

There are various benefits of the free trade but the biggest beneficiary of the free trade is consumers. Free trade advocates free flow of goods across the nations as result consumers get quality products at affordable price. Prior to free trade it was very difficult for the companies to go global as there was lot of restrictions on free trade. The main objective of every government at that time was to save the domestic companies from the international competition. Since there were only few players in the market, so they use to charge price according to their comfort.

But as the globalization spread across the various parts of the world, countries started opening their market for the foreign companies as a result many companies entered in the foreign market with innovative product. Consumers get the choice to choose the best products from variety of products available in the market. In olden days, it was not easy for the US consumer to get the products produced in china but now it is matter of clicks. Consumer can buy the products online from any part of the world.

Despite many advantages, free trade policy has never been completely adopted by all the countries of the world. Free trade and the resultant international specialization lead to unbalanced development of national economy. Under this system, only those sectors are developed in which the country has a comparative advantage. Other sectors remain undeveloped.

This results in lop-sided development. Free trade has increased the dependency of the poor nations on the power nations. The poor countries have become poorer due to free trade. Due to free trade, the local industries do not compete with the foreign companies which lead to the closure of the domestic companies. This gave rise to unemployment in these countries. Free trade has also created the problems such dumping, Political Slavery etc.