Right after World War II, there was a general belief that the absence of free trade was harmful and led to economic recessions and even depressions, particularly the Great Depression of 1930, which has been vividly in the living memory of governments and societies. These ideas were reinforced by the founding of the EEC in 1957, and then by the creation of the WTO in 1995. Even Adam Smith and David Ricardo believed strongly in free trade. However, today, in our globalized and interconnected world, is free trade our enemy or an open door to wealth and innovation? Say no to plagiarism. Get a Custom Essay on “Why Violent Video Games Should Not Be Banned”?Get the original essayFree trade is the absence of barriers to the import or export of goods and services between countries. In the case of developing economies, assuming all else equal, this would give palm oil producers in Malaysia ($315 billion GDP), for example, the same opportunities as producers in -Low ($826 billion GDP), meaning There would be equal chances for palm oil from both countries to be sold on the global market. This then benefits Malaysia, resulting in an increase in its GDP, which promotes its development and improves the lives of Malaysians, as there would be greater value to inject into its economy through increased exports. However, without free trade, there would be import duties, making Malaysian palm oil less competitive, thus leading to a lower injection value compared to the previous scenario, which would have a less positive impact on its economy and its development. One example is India increasing its import tax on refined palm oil to 54%. However, some duties specifically target a country rather than a product, which would make the export in question very uncompetitive in the importing country. Trade management, trade barriers and embargoes largely affect developing countries, as their main exports are primary products, which are generally cheaper and have more volatile prices than the manufactured goods or services usually exported by HICs. This means that per unit sold of each good, developing countries receive less revenue, underscoring the importance of free trade for these economies to maximize their exports. This highlights the inequalities in the global economy, where supreme nations are able to manipulate global trade, subsequently but unintentionally affecting the growth of smaller economies, showing how beneficial free trade can be for developing countries and combat the imbalance of economic and political power in developing countries. the world. The WTO and the Fairtrade Foundation recognize and reinforce the importance of free trade for LICs. Since trade is a "two-way trade", free trade has an additional positive impact on developing countries, by allowing them to import necessary capital goods at a lower cost in order to shift their PPF outward to the future, which is essential for the growth and development of an economy. Furthermore, free trade has a positive impact on developed economies because it helps improve economic relations. Australia ($1.32 trillion in GDP) has 11 free trade agreements that "benefit Australian importers, exporters, producers and investors by reducing and eliminating certain barriers to.