Trading goods and services without barriers are important in the global setting. This practice should be promoted globally. Over and above comparative advantage, a number of theories back up international trade. The prospects of international trade further necessitate the installation of open markets for the benefit of participating parties. For example, the theory of factor proportions addresses both the import and export sides of international trade (Carbaugh, 2012). In this respect, free trade is the essence of international trade. National competitive advantage is a critical factor in the international trade environment (Reuvid & Sherlock, 2011).
The use of resources, technology development, availability of infrastructure, and industry growth affect the ability of any given state to compete at the global level. By embracing free trade, partners in trade capitalize on their competitiveness and subsequently import or export products and services throughout the world. Moreover, unregulated access to markets and market information encourages the proliferation of free trade (Wessel & Davis, 2007). Trade agreements between free trade partners provide a fair environment within which participants have unrestricted export-import movements. Free trade sees the abolishment of import tariffs, thus making the movement of exports and imports easier.
The idea of free trade is to venture into markets that previously exhibited barriers to entry. Therefore, promoting free trade should be a global practice due to the available opportunities, advantages, and benefits. A look into Bangladesh’ s textile industry reveals the benefits of free trade. Although this country is one of the poorest in the world, her textile industry is outstanding at the international level. With the quota system in place, Bangladesh enjoyed preferential access to key Western markets (Bhattacharya, Smyth, & Vicziany, 2004).
When free trade finally reached the scope of poor countries, Bangladesh was seemingly on the losing end. However, this country would prove that free trade did more good than harm. Following the successful implementation of free trade principles in Bangladesh, the country’ s textile industry hit an all-time high in terms of export revenues (Daniels, Radebaugh, & Sullivan, 2012).
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