In theory, free trade can improve the quality of life of a country`s citizens. Nations can import goods that are not readily available within their borders. Importing goods may be cheaper for a developing country than trying to produce consumer goods or services within their borders. Many developing countries do not have the production processes to turn raw materials into valuable consumer goods. Small developing countries often have the lowest natural resources in the economic market. Free trade agreements ensure that small nations can preserve the economic resources needed to produce consumer goods or services. The improvement of external relations is generally an unintended result of free trade. Developing countries often face international threats. The development of strategic free trade relations with more powerful countries can help strengthen the protection of developing countries from international threats. Developing countries can also use free trade agreements to improve their military strength and internal infrastructure and improve politically. These unintended benefits allow developing countries to learn how to manage their economies and what types of government policies can best benefit their citizens. Developing countries can benefit from free trade by increasing their volume or access to economic resources. Nations generally have limited economic resources.
Economic resources include land, labour and capital. The land represents the natural resources found within the borders of a nation. Developing countries can use free trade to improve their productive efficiency. Most nations are capable of producing any type of goods or services. However, a lack of adequate knowledge or resources can render production inefficient or inefficient. Free trade is an economic practice in which countries can import and export goods without fear of state intervention. State intervention includes tariffs and import/export bans or restrictions. Free trade has several advantages for countries, especially those in the development phase. “developing countries” is a broad term. According to a widely held definition, a developing country is a nation with low economic resources and/or low standard of living. Developing countries can often move their economies forward through strategic free trade agreements. Discuss five reasons why less developed countries are reluctant to implement the free trade agreement.
Individual citizens may also travel abroad to improve training or experience of certain production or business methods. These people can then report important information on improving the country`s production processes. Developing countries with friendly neighbours may also import goods more often. Imports from neighbouring countries ensure a constant flow of goods that are easily accessible to consumption.