Question

Provide rationale and research support whether the benefits of free trade outweigh the drawbacks

Answer 1

Free trade gives opportunities to small traders to sell their goods and servicies to the person who is sitting at difference corner of the world and willing to pay more than what trader may get in the domestic market. Not only for traders but also for consumers it is like unity of the world. Because of free trade only person sitting in India is able to buy an iphone and use it confortably without it it would not have been possible. In 1991, when India was a closed economy was suffering from many problems people were dying out of food. Their market size was very small becaue they have limited consumer that were very poor and were not able evolve rapidely but trader got free from then the country faced drastic growth and markets also evolve. There are some disadvantages also of free trade such as sometime it may harm domestic market because foreign goods. Like, MI did with Micromax and Karbon in India. Free trade provide also provides quality technology, the goods which are best in quality get opportunity to be demanded wherease goods which are not able to complete with the market loose their market share completly.