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Argument against free

trade
The major logics against free
trade are:
1.Excessive dependence on
foreign countries:
Dependency hypothesis
Neo colonialism in the veil of
trade
Secular decline in the terms of
trade
2. Suppression of domestic
industries:
Causes:
a. Uneven competition
b. Lack of benefits of large scale
production in an
underdeveloped economy
c. Strategies adopted by the
companies of developed
countries to capture market in
the LDCs
o Higher impact of
international fluctuations:

a. Recessions in the trading


partner (country) is transferred
through trade.
b. Market is affected by business
cycle facts.
c. There is high chance of
imported inflation
o Adverse impact on the
environment.
a. Chance of excessive
exhaustion of natural
resources.

b. The harmful products may


be imported.

c. Excessive deforestation in
LDCs to expand agricultural
export