An Analysis of Negative Factors in Free Trade in the Developing Countries

Classical economics believe that free trade is one of the engines of economic development in a country. According to idea, developing countries abandon the protective policies in the past and further open up to foreign capital and free trade. However, these developing countries profit less than the developed countries under the so called free trade framework, as the developed countries have claimed. Since developing countries are placed on a disadvantaged position in free trade, and two reasons cause such consequences, one is the unfair regulations established by developed countries, and the other is an inherent negative factor in the advantages of developing countries.