Free Trade: A Catalyst For Poverty Reduction In Developing Countries

Abstract

There have been several discussions about free trade and its effects on countries and their economies. On one side, there are scholars that argue that trade liberalization helps countries increase economic growth, increase income levels, and reduce poverty. The other set of scholars argue that trade reform negatively affects countries, particularly small businesses, and poor sections of society. The theory of free trade is discussed and real-life examples from other papers are used to support the argument. This paper supports trade liberalization and the use of free trade to reduce poverty, primarily in developing and underdeveloped nations. Scholarly research that argues for and against this thesis is cited to support the main point and respond to counterarguments.