Free trade

Free trade is the untaxed flow of goods and services between countries, and is a name given to economic policies and parties supporting increases in such trade.

History of free trade

All developed countries have used protectionism until they gained sufficient wealth to guarantee that they would benefit from free trade. As economist Dani Rodrik notes, "the only systematic relationship is that countries dismantle trade restrictions as they get richer."p22 From the 1700s to the mid-1800s, Britain used industrial policies similar to those later used by Japan and South Korea. Once Britain had secured economic leadership, they began to support free trade. Criticising the British position, President Ulysses S. Grant retorted that "within 200 years, when America has gotten out of protection all that it can offer, it too will adopt free trade".http://homepage.newschool.edu/~AShaikh/globalizationmyths.pdf

Related Topics:
Developed countries - Protectionism - Dani Rodrik

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