Government-Business Relations
Predominantly, free trade entails trade between two or more countries where there is an elimination of restrictions such as import duties, local production subsidies, import licenses, and export bounties. The common argument used to support free trade is that countries have different resources endowment. Therefore, each country should specialize in the production of goods and services in which it has a comparative cost advantage. Varying levels of technology required for resource exploitation necessitate the need for countries with advanced technology to invest in other countries where technological knowledge is less developed. The decision to allow foreign investment involves some ...
