Free Trade

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trade with other countries for the other goods that they need. Free trade influences the idea of specialization internationally, because according to classical economists specialization will increase the level of output globally. This theory is known as comparative advantage in comparative advantage, countries will specialize in the goods that they are best at producing (have the comparative advantage in). This way two countries producing the same goods at different rates can both benefit by allowing each country to produce the goods they are most efficient in producing. People believe that this way both sides of the trade will benefit; Countries will be able to take workers from the less efficient areas and focus more on producing goods that they are most efficient at. Countries will then save more on other goods by importing them from countries that specialize in them.
Also, countries that may be more efficient in all areas can still benefit. By allowing other countries to ...

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trade. One main con about free trade is the drastic increase in the unemployment rate of many developed countries. Due to the cheap labor cost of people in developing countries, many people would lose their jobs due to free trade in places such as the United States. People who specialize in areas that are not needed more would lose their jobs and have to compete to find new ones also. Not only do people in developed countries lose jobs but also people in developing countries will not be gaining good paying jobs. Although developing countries may be getting goods for cheap prices they will still remain in debt because many will still be without jobs or being paid minimal ...

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