Winners of the free trade are the consumers.
- A nation trade at the point where the world price is lower than
the local price. At the lower world price, the consumer purchase
more and they end up having more consumer surplus and increased
saving after consuming more at a lower cost. The saved income can
be spent on other items leading to a higher consumption level. Free
trade supports the consumer.
- The product having a comparative advantage will be exported and
it will benefit the abundant resources in the economy by increasing
the return on that factor.
Free trade will harm the producers who cannot compete at the
world price and are inefficient and the free trade will also affect
the scarce factor in the economy by reducing the return to that