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 and other entrepreneurs in the country to carry out their operations. This limits the country’s domestic workers from getting such employments and hence increasing the levels of unemployment to developing countries (Trentmann, 2008 p. 73). This increases dependency ratio to these countries and hinders them from realizing developmental goals such as decreasing unemployment rates. Similarly, due to lack of tariffs and barriers to market, many industries are established in the developing countries resulting to losses of some of the industries due to competition and hence the industries move to other countries leaving a gap in employment in the previous country. According to Isis Women, (2014 Free Trade Causes Massive Unemployment) free trade caused massive unemployment in Philippines in 1995 to 2001 with 53 firms being closed down resulting in loss of jobs for 80,319 workers as 29 downsized their human resource causing unemployment of 4,019 jobs. Similarly, free trade in US has led to relocation of most of companies to Mexico, India and other place of the world where tariffs could restrict industries from entry and thus enjoying a stable market. This led to mass unemployment in US.
Free trade has been argued as form of colonialism and imperialism in disguise and instead of contributing to developments it results in exploitation of small developing countries (Igwe, 2013 p. 113). Free trade is believed to benefit industrialized countries because of their capital potential. Most developed countries target the third world countries as the host countries where they carry their investment through exploitation of their resources. They dominate in the economy of the host country ending up controlling most of its resources, revenues, and most development projects. In 19th century, free trade helped European countries such as ‘Britain to obtained natural resources from small developing countries and this became disadvantageous to colonized countries over years, creating a gap development between the countries’ (French, 2008 p. 13). This may lead to industries or companies controlling the government though being independent. Therefore, for government to