Critical Analysis of Free Trade

The benefits of free trade to developing as well as under developed countries as per Harberler are Firstly Developing countries through the medium of free trade are bale to procure capital goods, Technical Know-How, Specialized machinery raw and semi finished material which are prerequisites for their economic development. It also provides a platform whereby the technical know-how along with transmission of evolved and creative ideas and the with importation of managerial skills talents and entrepreneurship develop. Secondly it acts as a via medium for international movement of capital from developed to developing countries. Thirdly, free international trade is the catalyst which helps to maintain a healthy, sound and free competition and practically wipes out monopoly and evils associated with it. It further adds to division of labor on an global scale thereby ensuring greater specialization, efficiency and economy in production. Fourthly, as far as consumers are concerned, it is beneficial as it provides a large variety of goods at the cheapest prices