Why do countries trade What problems exist if any to free tr

Why do countries trade? What problems exist (if any) to free trade?

Solution

Trade between countries occurs due to many reasons-

Free trade refers that there is no unfair barriers to Global business and economic growth of a country takes place. But there are some problems with Free Trade. Free trade increases the economic dependence on other countries for certain product. Sometimes international specialization lead to unbalanced development of the national economy. When there is no restrictions , harmful product can be produced and traded. A free trade mechanism can not ensure proper distribution.