Free tradeInternational trade links countries to the global economy (Vollrath, 1991). The global economy needs free trade. Countries need free trade. Trade with other countries occurs at some level in every country in the world. There may be some indigenous tribes in some countries that can claim to be self-sufficient, however, there is not a single country that can say the same. Supporters of an open trading system argue that international trade results in higher levels of consumption and investment, lower commodity prices, and a wider range of product choices for consumers (Carbaugh, 2009, p26). Free trade is necessary. How do countries decide what to import and what to export? Comparative Advantage Ricardo's Theory David Ricardo was a prominent economist of the 1800s. Ricardo was a major advocate of free trade. Adam Smith was also a supporter of free trade. Smith was more confident than Ricardo that the potential of a market economy could benefit society. (Carbaugh, 2009). Ricardo believed that a country's government should not interfere with free trade and could hinder rather than help it. Ricardo's theory of comparative advantages has been used by economists for years. The law of comparative advantage states that citizens of each nation can benefit by spending more time and resources on those things in which they have a relative advantage (Carbaugh, 2009, p12). This means that it is necessary to determine whether the production of a good or service occurs more economically domestically or abroad. Even if one country has an advantage in all situations, both countries can still benefit. The theory states that the least efficient nation should specialize in and ... middle of paper ... most likely not much will change because countries become content with the way current trade policies work and current trade policies. global economy in question, many countries will be afraid to try to make a change. Perhaps, when the global economy is more stable, some countries might be brave enough to go against the status quo and try to change the way they do business. Works cited Carbaugh, Robert (2009). International Economics, (13th ed.). Southwest, Cengage Learning. ISBN 13: 9780324581485Krugman, P.R. (1987) Is Free Trade Outdated? The Journal of Economic Outlook, 1(2), 131-144. Retrieved from http://dipeco.economia.unimib.it/Persone/Gilli/food%20for%20thinking/simple%20general%20readings%20on%20economics/Is%20Free%20Trade%20Passe.pdfVollrath, TL (1991). U.S. trade in competitive world markets. FoodReview, 14(1), 26. Retrieved from EBSCOhost.