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Free Trade

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Free trade is a concept that implies the action of exchange goods or services between countries and that commerce is done without barriers such as taxes, tariffs, quotas, among others. Free trade has some good implications for the countries that practice it, some of that implications are:

1. It allows the access to economic agents into the commercial activity such as freedom of prices, freedom of opening facilities, etc). With free trade there is an increase of the welfare of the population and promote the creation of new companies.
2. It allows the flow of goods or services without tariffs and other trade barriers (quotas, government regulations, health requirements, among others). The absence of those barriers facilitates the exchange of products between countries.
3. Free commerce improves the quality of life of all people and the countries involved in general, since they have more variety of products and services, more accessible prices and more quality.
4. Free trade makes countries economically dependent on each other, so there would be less chance to go to some war.
5. Free trade promotes the conditions of fair competition. Some organizations such as the WTO works to maintain and to regulate a fair trade between countries.

Annexes (negative aspects)

1. Free trade is a state protection of the interests of multinational corporations
2. Free trade support corporatism and not free trade, so it allows to developed countries to exploit third world countries, destroying local industries in these countries.
3. It affects the developed world for the loss of jobs in those countries, generating a deterioration of health and safety standards.
4. Free trade is an incentive for countries economically dependent on each other, this less chance to face and go to war.
5. Developed countries tend to push the third world to open their markets to industrial and agricultural products of the third world.

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