Free Trade Agreement and Economic Liberalisation in The Modern Conceptual Ideas Growth and Myth and Reality.

INTERNATIONAL JOURNAL OF SCIENTIFIC PROGRESS AND RESEARCH (IJSPR) Issue 130, Volume 45, Number 03, March 2018

4 Pages Posted: 25 Mar 2020

See all articles by S. Sunil

S. Sunil

Government College, Attingal - Department of Commerce

Dr. Shanimon. S S

Government College Attingal; University of Kerala; Government College, Manjeshwer

Date Written: March 15, 2018

Abstract

Free trade refers to a situation where a government does not attempt to restrict what its citizens can buy from another country or what they can sell to another country. The classical trade theories of Smith, Ricardo, and Heckscher-Ohlin predict that the consequences of free trade provide both static economic gains (higher levels of domestic consumption and more efficient utilisation of resources) and dynamic economic gains (stimulates economic growth and the creation of wealth). David Ricardo's 'theory of comparative advantage' is regarded in economic literature as a proponent of free-trade. According to Ricardo, a country should specialise in the production of product(s) that it can produce most efficiently and trade them for product(s) produced by other countries. Again, all nations that participate in international free-trade will realise economic benefits, as trade is a positive-sum game and not a zero-sum game.

Keywords: Foreign Trade, Foreign Trade Agreement, Liberalization, Economic Development, Economic Zones

Suggested Citation

Sunil, S. and Saleem, Shanimon, Free Trade Agreement and Economic Liberalisation in The Modern Conceptual Ideas Growth and Myth and Reality. (March 15, 2018). INTERNATIONAL JOURNAL OF SCIENTIFIC PROGRESS AND RESEARCH (IJSPR) Issue 130, Volume 45, Number 03, March 2018, Available at SSRN: https://ssrn.com/abstract=3545742

S. Sunil

Government College, Attingal - Department of Commerce

India

Shanimon Saleem (Contact Author)

Government College Attingal ( email )

Attingal
Trivandrum
Attingal
India

HOME PAGE: http://www.governmentcollegeattingal.in

University of Kerala ( email )

Trivandrum
India
09496281982 (Phone)
695101 (Fax)

Government College, Manjeshwer ( email )

MANJESHWER
KASARAGODE
09496281982 (Phone)
695101 (Fax)

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