Does free trade benefit the global economy? This has been a long-disputed question among economists since the concept of free trade emerged in the post Cold War world.

Free trade can be defined as a market model in which trade in goods and services between or within countries flow unhindered by government-imposed restrictions such as taxes, tariffs, or subsidies.

Proponents of free trade stress that it decreases prices by ensuring that countries and people specialize in their comparative advantages. Lower prices means consumers can spend less amount of money on necessities. This enables them to spend more on other things, thus improving their standard of living.

Free trade also creates productive domestic jobs when it trades internationally with other countries. They insist that the restrictions placed on buying other foreign goods that have less production cost only encourage production loss by sustaining domestic industries that have higher production costs.

They also say economies that have been more open to free trade have shown a better growth rate and with better integration in a global economy, poverty in the world will be reduced.

On the other hand, opponents stress that free trade worsens income inequality and the gap between rich and poor countries has widened. Poor countries have lower incomes since developing and industrial countries place them at a high disadvantageous position when competing in a global economy.

Also, trade liberalization damages the growth of poor countries as it tends to lead to the unfettered exploitation of workers and abuse of the environment.

In addition, free trade also impairs national economic controls and intrudes on national sovereignty. Free trade makes it difficult for a certain country to gain control of its economy and make economic policies for the future.