How can both the United States and a third-world country benefit from an FTA?
• Free trade benefits all partners to an FTA. In more general terms, trade between two countries with different economic means can benefit both countries under the principle of comparative advantage. Although the can produce most goods and services more cheaply than a third-world country, the latter can certainly produce a number of goods and services at a relatively lower price. Each partner can focus on those goods and services that it produces best in comparison to its partner, given the forces of market competition.
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