State the fallacious arguments for free trade?

There are some misconceptions which generalise some of the potential gains from trade and specialization under all conditions. We examine them to see where thses fallacies lie

1. Free trade always benefits all economics :

this may not always be the case. in case of small developing economies, they may gain by restricting trade in order to get a sufficient favourable shift in their terms of trade. If the tariff barriers are removed and free trade policy throughout is adopted, then these countries would certainly lose out

2. Infant industries should never give up their protection:

This is an another fallacy. When the industries grow up reasonably wee to reap large economies of scale resulting in the fall or per unit costs, then the tariff protection may be abandoned. This protection should only be given in the early stage of development tiil the time the industries become competitive enough to face the foreign rivals.

3. Free trade maximises world income under real world

conditions based on certain assumptions such as given technology and comparative costs. But if these assumptions are relaxed and the technology changes then it can not be shown that free markets will always maximize income over time. It is quite possible that government interventions or market imperfections may introduce some form of technological change favourable to maximize the world income.