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Free trade: advantages and disadvantages essay
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What are the benefits of a free trade economy?
It is opening up of economies (markets) by bringing down trade barriers which in turn allows goods and services from everywhere around the globe to compete with domestic products and services. Under free trade there is no creation of artificial prices or a false demand and supply of products as it gives true picture of the actual demand and supply.
How is globalization similar to free trade economics?
Globalization is similar to what free trade stands for which is the integration of world economies through the reduction of barriers to the movement of trade, capital, technology and people
How does the WTO work to promote free trade?
WTO – promotes free trade and regulates on trade disputes by providing progressive free trade through negotiation binding and transparent agreements which leads to fair competition, settling disputes as well as providing temporary protection of infant industries to specifically help small firms.
Last Update: Oct 2021
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Advantages of specialization: firstly, liberated trade secures complete the advantages of international division of labour.
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