📌 Characteristics of Free Trade

🏦 A. Free Trade attracts foreign capital.

• As mentioned earlier, free trade tends to attract foreign capital.

• With fewer trade restrictions, investors are more likely to invest in foreign markets, creating opportunities for economic growth and development.

🚫 B. Free Trade removes chances of monopolistic tendencies.

• While free trade can reduce monopolistic tendencies by increasing competition, it’s important to note that it doesn’t completely eliminate the risk of monopolies or oligopolies.

• Some sectors or industries may still experience monopolistic practices, especially if certain firms dominate due to their size or market power.

• However, in a competitive environment, free trade does tend to lower the chances of monopolistic behavior over time.

🛒 C. Free Trade provides maximum protection to the interest of consumers.

• Free trade often benefits consumers by offering a wider variety of products, lower prices, and better quality through competition.

• This is one of the key advantages of free trade.