economic development. For example the European Economic Community elimination of import and export tariffs for its member states encouraged free movement of goods and services across the region in a common market (Bento, 2009 p. 73). Therefore, free trade has contributed greatly to development of small nations through improved trade that encourages export of goods and services without barriers.

Trade liberalization has increased countries integrations and as a result aid to trade inflow to developing countries in terms of technologies and capital has been increased. This has led to strong economic growth, which has been reflected by the increasing gross domestic product and exports for developing countries in East Asia, Africa and Latin America. For example, most of Latin America middle income level countries have integrated with developed countries such as china resulting to improvements of their financial system and consecutive developments (Chen, & Emile, 2013 p. 118). Consequently, technology transfer has led to shift to manufacturing industries, which has attracted investors to the countries. Technology has resulted to increase of improved productivity through lowered cost of production by lowering the cost of labour and increasing relative labour productivity. According to comparative advantage theory by Ricardo, a ‘country should concentrate on production of goods that is best suited at lowered cost in order to improve productivity and economy through export to a second country that is not good in production’ (Bento, 2009 p. 28). Developing countries have been able to achieve improved productivity and specialization through adoption of technologies that have been introduced in their countries by other developed countries through trade liberalization. For example, India has evidenced comparative advantage by employing labour intensive production skills in manufacturing and services that employs intensive skills as in software industries. This has led to its increased exports in its production to other Asians countries thus increasing its revenues and gross domestic income that has played a major role in its economic development. High technologies attract foreign investors and investments increase. Increased investments in the developing countries also results to significant decrease in levels of unemployment. Consecutive increase in exports from developing countries has been due to decreased barrier and reduced tariffs (Johnston, et al 2011, free trade). Therefore, it can be concluded that free trade is has helped countries to advance economically and realise their economic goals such as millennium development goals.