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free trade and limited trade

What are the advantages and disadvantages of free trade? From an economic point of view, is free trade better than limited or no trade? Have you benefited from free trade? how?

How is the economy impacted by trade? With countries like China or Brazil growing fast, should the U.S. promote more free trade agreements?

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The advantage of free trade is very obvious because it promotes economic efficiency. Resources from all countries are used efficiently and eventually all citizen of the world will benefit from that. Countries should focus on producing products that they are having cost advantage of producing them and import other products that they don't have cost advantage. Cost advantages position can be due to natural factor endowment or acquired through technology.

However, free trade can also be disadvantageous for certain countries. For example, some countries are ...

Solution Summary

In the long run, all countries will benefit from free trade. However, in the short run some economies may suffer initially before benefiting from free trade. Therefore, the best strategy is to allow for partial trade while migrating towards a totally free trade economy.