Question

What are some advantages and disadvantages of free trade agreements for Canada and its citizens? What might be a disadvantage for countries that do not have free trade agreements?

Answer 1

Advantages of Free Trade:

The advocates of free trade put forward the following advantages of free trade:

(a) International Specialization:

Free trade causes international special­isation as it enables the different countries to produce those goods in which they have comparative advantage. International trade enables countries to obtain the advantages of specialisation. First, a great variety of products may be obtained.