Free trade is the ability to exchange goods and services without barriers and allow prices to increase naturally based on supply and the request. In theory, free trade was a way of breaking down barriers between countries, removing taxes and allowing prices to be set naturally by supply and demand. According to the World Trade Organization, this gives poor countries the opportunity to specialize in the production of goods derived from their environment and natural resources, with the ability to sell these same goods to the Western world, while still being able to to buy back goods that cannot be produced in their country of origin. This idea must be beneficial to everyone; however, the rich get richer while the poor stay poor. Free trade agreements can create opportunities for Americans and help the U.S. economy grow. According to the US Trade Representative, “the United States is a member of the World Trade Organization (WTO); The Marrakesh Agreement Establishing the World Trade Organization (WTO Agreement) sets out the rules governing trade among the 154 members of the WTO. To reduce poverty, developing economies must grow faster, allowing the poor to also benefit from this growth. Trade can play an important role in reducing poverty because it stimulates economic growth, allowing the poor to also benefit from this surge in growth and development. According to Fergusson's study (2005), the standard of living in developing countries is not catching up with that of developed countries. They have made some progress but still lag behind developed countries and their standard of living. What distinguishes developing countries from poorer countries is their openness to free trade, as noted in Ferg...... middle of paper...... and the disadvantages associated with it. After much research and active participation, I can now say how much I understand exactly what free trade is and which countries and individuals actually benefit from it. Some countries benefit from free trade while others lose. Works cited by Tupy, ML (2006). Free trade benefits everyone. Retrieved from http://www.cato.org/pub_display.php?pub_id=5354Sanchez, F. (nd). International Trade Administration. Retrieved from http://trade.gov/fta/(nd). Retrieved from http://www.stopftaa.org/what-is-free-trade.phpWorld Trade Organization. (13 J). Retrieved from http://www.wto.org/english/news_e/pres00_e/pr181_e.htmTrade agreements. (nd). Retrieved from http://www.ustr.gov/trade-agreementsOxfam Education. (nd). Retrieved from http://www.oxfam.org.uk/education/resources/milking_it/milkingit/information/the_issues/free_trade.ht