Question

free trade is good for the developing economies. Discuss

Essay answer in 350 words

Answer 1

We know that free trade is an economic activity where countries can export and import without government intervention. The government intervention includes tariff, quota or any other limitations. Free trade is good for developing countries. The developing country is a nation with low economic resources and standard of living. The benefits are,

It increased economic resources

The developing countries benefited from free trade in the sense that they can access more economic resources from their trading partners. The economic resources are land, labor and capital.

It is improving the quality of life

The free trade benefits to enhancing the quality of life of people. Importing goods will become cheaper in domestic nations. It increases the consumption of domestic consumers.

Better foreign relation

The quality of foreign relation is another benefit of free trade. Because developing countries have a foreign threat. The international link with more powerful countries removes this threat. They can also improve their military strength and internal infrastructure. Also, the relation also has some learning experience of how to govern the economy.

Production efficiency increased.

Free trade can improve the production efficiency of the trading country. The individuals in developing countries can visit foreign countries for better education and experience for the better production technique in their business. This individual is crucial for creating nations production efficiency by using foreign information.