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Assignment:
"For lesser-developed nations, free-trade means forgoing the strategy of import substitution. This economic development strategy is to close one's border to imports in order to force to force local production of desired products, and is incompatible with free trade. As a result, the concern is often raised that free- trade may lead to exploitation of a low-priced labor force without any associated development benefit...
To the lesser developed nations, therefore, free-trade does not create or avoid these outcomes on its own; it is the government response to this new and changed trading environment that will dictate the future course of events. The real measure of the desirability of free trade is how a participant nation intends to use its gains from free-trade to offset its losses."
Will it (a participant nation) ensure that the growth and gains from trade are accessible to and enjoyed by all citizens, or will it perpetrate an economy dominated by a tiny and elite segment of society?
What social, political, and economic advantages can be expected by lesser- developed nations which enter into a free-trade agreement with developed nations?
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