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Essay / Does free trade delay or enhance development in...
IntroductionThe international system of the 19th century was a very important era for the doctrine and practice of free trade. This key date in the 19th century is 1846, the year England repealed the Corn Act. The Corn Laws protected British aristocrats and farmers from imported corn. Corn was at that time used to make bread. This conflict pitted industrialists and many workers against landowners and farmers. The industrialist wanted cheap corn so that the cost of bread would go down and he could reduce or reduce workers' wages. This would give their products a competitive advantage in international markets over products from countries where food costs and wages were high. British workers also supported this law because they wanted to buy cheap bread. David Ricardo, a securities trader and member of parliament, articulated the liberal theory of comparative advantage that makes the intellectual case for free trade. Today, this theory of comparative advantage remains the foundation of arguments for economic integration and free trade. The general objective of this paper is to try to answer these questions: • Does free trade improve or retard development in developing countries • Is free trade really free . Free trade is commerce between two or more countries without any limitations imposed by governments or other regulators; hence the free movement of goods and services across national borders (O'Brien and Williams, 2007 p.139). (Vander .W, 2005 p.24). It emphasizes the liberalization of nations' markets through the elimination of tariffs, quotas, and other forms of restrictions to allow the free movement of products across national borders.Benefits of Free TradeOpening up trade. Free trade remained a foundation... middle of paper... the barrel: Africa's oil boom and the poor. Available at http://www.crsprogramquality.org/storage/peacebuilding/Bottom%20of%20the%20barrel.pdfEuropean Commission, (2012). Trade, growth and development; Adapt trade and investment policy to countries that need it most [SEC (2012) 87 final]. O'Brien, R. and Williams, M. (eds.) (2007) Global political economy: evolution and dynamics. 2nd edition. Basingstoke: Palgrave. OECD, (2009). Journal on development to escape poverty; How Aid for Trade Can Help. World Bank (2000) World Development Indicators 2000. Washington DC: World Bank [Online] Available at http://data.worldbank.org/indicatorStop Free Trade: Available at http://www.stopftaa.org/is-free -trade-really-free-what-it-costs-a-country.htmlUNCTAD, (2004).The Least Developed Countries Report. UNCTAD/LDC/2004 (Overview), sales number E.03.II.D.9.