What are the possible advantages of free trade?

Firms

a)  Specialisation and enhanced use of comparative advantage

b)  Possibility of advantages of scale

c)  Spread and knowledge of technology - production gains

d)  Spread of skills and labour capital

e)  Access to new/wider markets

• consumers

a) Increased choice, i.e. variety

b) lower prices

c) overall consumer welfare (consumer surplus - outside of syllabus) in lower prices and increased consumption

d) Increase in standard of living