Free Trade Vs Protectionst
Free trade is based on agreements between nations to drop import barriers, allowing foreign goods and services to compete on a level playing field with domestic products. This opens markets for developing countries and in theory improves their economic conditions. Developing companies in turn are more capable of buying products from industrialized countries. Jobs lost in one industry of a developed country can grow in another industry. Free trade is meant to improve the economy of all participating nations. The World Trade Organization (WTO) regulates free trade agreements among member nations.
Adam Smith gives interesting idea on free trade where countries can export and import goods without any additional tariff. Tariff can be one of a country
In a Free Trade Agreement the numbers or quotas of products or services are not controlled. Free Trade Agreements attempt to create a mutual win-win ...