Free Trade Theory

Part 1: Introduction

• Definition of free trade theory
• Contributions of free trade theory to the modern economy (Spiegel, 1991).
• The paper offers an overview on key economists, their roles, philosophical contributions and famous economic theories.
• Thesis: Economic theories formulated by distinct contributors have brought about the modern transformations and structure of various economic sectors.

Part II: BODY

Major economists

Adam Smith

• Coherent and logical theory on economy functioning
• Philosophical works as the father of economists
• Perspective on free trade theory
• The Theory of Moral Sentiments
• Roles as an economist

Jhon Maynard Keynes

• Brief overview on early life and rise as an economist
• Role in Keynesian ascendancy 1939–79
• Perspective on free trade theory
• Views on race, inflation and trade imbalances

Milton Friedman

• Major contributions on free trade theory
• Perspective on exchange rates
• His view on federal reserve and monetary policy

Karl Max

• Major contributions
• Labor, class struggle and false consciousness in regard to economy
• Economy, history and society
• Philosophical works

Famous Economic Theories

Supply and Demand

• Key principles central to an economy
• Major perspectives and economic inclination (Ebenstein and Ebenstein, 2015).
• Relationship between supply and Demand
• The law of demand and supply

Maxism

• Wages remaining at subsistence level
• Concept of surplus value
• Concepts of economic growth, technological progress and capital accumulation

Market Socialism

• Definition and major contributors in this theory
• Major views and perspective on economy structure

Comparative Advantage

• Definition of comparative advantage theory
• Haberler’s opportunity costs formulation
• Major criticism associated with the theory

Part III: Conclusion

Reinstatement of the thesis

General overview on the current status in the modern society