Question

What are considered benefits of free trade?

Answer 1

1. Less tariffs which leads to lower prices for consumers
2. Increased competition for supplies
3. Increased raw materials
4. Increased exports

Answer 2

Essentially, free trade enables lower prices for consumers, increased exports,benefits from economies of scale and a greater choice of goods. This explains that by specialising in goods where countries have a lower opportunity cost, there can be an increase in economic welfare for all countries.