Two simple ways to understand the proposed benefits of free trade are David Ricardo`s theory of comparative advantage and analysis of the impact of a tariff or import quota. An economic analysis using the law on supply and demand and the economic impact of a tax can be used to highlight the theoretical advantages and disadvantages of free trade. [16] [17] Pro-free trade economists believed that trade was the reason why some civilizations prosper economically. For example, Smith drew attention to increased trade as the cause of the rise not only of Mediterranean cultures such as Egypt, Greece and Rome, but also of Bengal (eastern India) and China. The great prosperity of the Netherlands after the unleashing of Spanish imperial rule and the pursuit of a free trade policy[32] made the conflict of free trade mercantilists the most important issue in the economy for centuries. Over the centuries, free trade policy has fought with mercantilist, protectionist, isolationist, socialist, populist and other policies. During the interwar period, economic protectionism prevailed in the United States, best known in the form of the Smoot-Hawley Tariff Act, linked by economists to the spread and spread of the Great Depression around the world. [42]:33[43] Beginning in 1934, trade liberalization began with the Trade Agreements Act. Studies show that support for trade restrictions is highest among respondents with the lowest level of education.

[66] Hainmüller and Hiscox believe that the Global Enabling Trade Report measures the factors, policies and services that facilitate trade in goods across borders and objectives. The index includes four sub-indices, namely market access; border management; transport and communication infrastructure; and the business environment. As of 2016, the following 30 countries and territories were as follows:[57] The idea of a free trade system comprising several sovereign states was born in a rudimentary form in sixteenth-century imperial Spain. [30] The American jurist Arthur Nussbaum stated that the Spanish theologian Francisco de Vitoria „was the first to expose the terms (but not the terms) of commercial freedom and the freedom of the seas.“ [31] Vitoria argued in favour of the jus gentium principle. [31] However, it was the first two British economists, Adam Smith and David Ricardo, who then made the idea of free trade their modern and recognizable form. Free trade came to the United States as a result of the American Revolutionary War. After the British Parliament passed the Prohibitory Act that blocked colonial ports, the Continental Congress responded by declaring its economic independence and opened American ports to foreign trade on April 6, 1776. According to historian John W.

Tyler, „[t]he trade had been imposed on Americans, whether they liked it or not.“ [35] Debates on free trade and related issues concerning The Colonial Administration of Ireland[72] led at regular intervals (as in 1846 and 1906) to cracks within the British Conservative Party (Corn Law Issues from the 1820s to 1840s, Irish Home Rule Issues from the 1990s). and in the early twentieth century). The literature that analyzes the economics of free trade is rich. Economists have done important work on the theoretical and empirical effects of free trade. Although it is a winner and a loser, the broad consensus among economists is that free trade offers a net benefit to society. [22] [23] In a 2006 poll by U.S. economists (83 respondents), „87.5% agree with the U.S.