Activity 2.

B
(Essay Type)

Essay Question: Explain your answer in not more than five (5 sentences).

What are the advantages and disadvantages of free trade? Do these arguments fully hold in
relation to both developed and developing countries?

One of the main advantages of free trade is that both countries are able to gain economic growth due to
the globalization improving the living standard. Another main advantage is that it gives a chance for
developed countries to invest in developing countries giving them more opportunities to grow. As with
everything there is a disadvantage to free trade, one thing to remember is that the developing countries’
resources might get exploited by the developed country. In addition the country will most likely not
depend on it’s local products and reduces opportunities in the domestic sector. When it comes to free
trade the developed countries gain more than the developing countries, but it does give a chance for the
developing countries to grow as mentioned before, they need to set restrictions and be strict with them in
order for them to not lose more than they are gaining.