between countries, it would have been very difficult for countries like India to realize their development. Therefore, free access to economic resources by developing countries have shaped their economies and helped in consecutive developments.

However, free trade has been argued to be unrealistic to small developing countries and instead it is detrimental to its economy by increasing level of unemployment, exploiting domestic companies, increasing pollution and lowering people’s standard of living.
Free trade is viewed as means by which developed countries exploit domestic industries of developing countries thus affecting their economic development. Multinational companies such as Nike have been reported to exploit developing countries, (for example Asian countries) by recruiting cheap labour and taking advantage of reduced barriers to maximise on their profits (Irwin, 2009 p. 204). Free trade causes increased influx of imports in a country resulting to increased supply of goods in the market. This causes decrease in prices of goods and services causing domestic companies and industries to reduce their prices, which may result loss and reduced share of the market. Therefore, they become less competitive. This may affect the domestic industries by causing decreased growth and as a result crippling. Hence, for countries to protect their domestic industries, they ‘impose taxes on imports and policies that restrict imports’ that may cause price fluctuations in the market (Hanson, 2010 p. 204). For example, increased steel import to UK from Asia resulted in ‘decreased prices of motor vehicles and thus the car manufacturers and sellers experienced reduced prices thus making losses’ (Verband der Automobilindustrie, 2005 p. 34). The imposition of tariffs on imports decreases entry into a country market thus increasing the prices and the supply of goods by domestic companies. On the other hand, free trade has increased imports resulting reducing the price of good in the market, thus increasing the demand of imported goods and decreasing demand of domestic products thus affecting domestic industries economic growth and that of the host country.

Free trade has also been argued to be the cause of unemployment to domestic developing countries. Free trade does not limit both the entry of entrepreneurs and labour in a countries. This means that there will be transfer of skilled labours from different countries coming together with their manufactures