Disadvantages:

(i) It may lead to collapse of infant firms. These are young firms not enjoying economies of scale and producing at high unit cost. If International trade is allowed cheap imports are brought in and these may lead to the collapse of infant firms.

(ii) International trade may lead to excessive interdependence. This may have negative effects on the Country in times of crises Ghana and Nigeria, Nigeria may halt its exports of crude oil to Ghana.

(iii) It may lead to unemployment. If through international trade infant firms collapsed in a country their employees will be laid off and it will create unemployment.

(iv) International trade may lead to dumping. Dumping occurs when goods are old in foreign countries below their cost of production at home. This will under-cut competition in the foreign country and destroy local firms.