“No nation has ever been ruined by commerce, even the apparently most disadvantageous” (Benjamin Franklin, 1774)The Advantages of Free TradeFree trade is defined by the ability of individuals to engage in economic transactions or trade with people in other countries, without any government-imposed restrictions, such as tariffs or any other form of discrimination. Free trade is represented today by examples such as the North American Free Trade Agreement (NAFTA, a trilateral trade bloc between Mexico, Canada and the United States of America) and also the European Economic Area (EEA, comprising members of the European Union. (Free Trade Association, such as Norway, Iceland and Liechtenstein, as well as all members of the European Union, except the Croatia), both establishing open markets with few or no trade restrictions. Countries specializing in commodity manufacturing where they have a comparative advantage (the ability to produce a good at a lower opportunity cost than others. others) will strengthen their production, rather than focusing on sectors in which other countries have a comparative advantage. By specializing, countries can better manage and allocate their resources, and acquire resources more cheaply from others. business partners. products from our own industry used in a way that gives us some advantage. (Smith 1776, p. 595)Adam Smith was one of the first to mention the concept of comparative advantage, but the "law of comparative advantage", the one which underlies the advantages of the concept of free trade , was clarified. a few years later...... middle of document ...... perhaps this agreement will be a big step towards the end of the Doha Round, after years and years of unproductive debates.ConclusionLook at today's news In successful economies, it is safe to say that open-minded development plans, decisions and policies throughout their modern history have played an important role in their progress, most of them having embraced the benefits of free trade after understanding its potential to help grow their economic well-being. Openness to other nations and the constant search for international trade have paved the way for development, giving these economies a head start in a world gripped by globalization, even if everyone disagree on this point. The only issue we need to worry about right now is maintaining international free trade as a fair type of trade, in which both rich and developing countries benefit...