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Free Trade for Poor Nations

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Submitted By shauno1
Words 1949
Pages 8
International Trade & Finance

Assessment Task 1

Free trade for poor nations

Individual Assignment

Prepared for:

October 2012

Submitted: July 2012

Prepared by:

Table of Contents

Introduction …………………………………………………………………………… 3

Background …………………………………………………………………………… 4

Argument for free trade ……………………………………………………………… 4

Argument against free trade ……………………………………………….………. 5

Conclusion …………………………………………………………………………….. 7

List of references ………………………………………………………………………8

Introduction

Through globalisation, competition, specialisation and access to technology, free trade and openness has allowed most countries to improve their growth enormously. Free trade has allowed and opened up a lot of opportunity for developing nations to improve their economy and to make provision for rapid growth.

The comment that free trade cannot work or be in the interest of the world's poorest countries due to them being at a competitive disadvantage in every sector is a little false, as free trade has shown to help some but not all such or similar nations. Free trade can help the poor increase their wealth and provide opportunity however, in today’s world, free trade may also act as a hindrance to growth and lead to even greater poverty and resentment toward larger economies.

This report aims to argue both points that free trade can work in developing nations and be in the best interest of poor countries. However, there are many counter arguments against free trade and how ethical and political issues have damaged the vision and essence of what free trade should be about.

In order to understand both arguments, the essence of free trade should be defined.
The likes of Adam Smith, David Ricardo along with other known economists define and believe that ‘free trade’ enables all nations to gain, leading to the most efficient use

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