Optimisation of Consumption
•Free trade helps the trading countries to secure the optimisationof consumption. In the absence of international trade, acountry’s domestic consumption is limited to its
•But through international trade, the consumption possibilitiescan expand
Benefits to Consumers:Free trade also benefits the consumers by enabling them toenjoy the large variety of foreign goods which their owncountry cannot produce.
Economic Development :
Encourages specialisation and division of labour
Stimulates healthy competition
Increases skills, technical know-how
Makes available necessary raw materials, machinery and foreign capital.