Free trade is the ability to exchange goods and services without barriers and to let prices rise naturally through supply and demand. In theory, free trade was a way to break down barriers between countries by abolishing taxes and allowing prices to be set naturally through supply and demand. According to the World Trade Organization, this gives poor countries the opportunity to specialize in the production of goods that derive from their environment and natural resources with the ability to sell those same goods to the Western world, while being able to buy back goods that could not be produced in their country of origin. This idea must be a win-win for everyone; however, the rich get richer while the poor stay poor. Free trade agreements can create opportunities for Americans and help grow the U.S. economy. According to the United States Trade Representative, “The United States is a member of the World Trade Organization (WTO); the Marrakesh Agreement establishing the World Trade Organization (WTO Agreement) establishes the rules governing trade between the 154 members of the WTO”. To reduce poverty, developing economies must grow faster, allowing the poor to benefit from this growth as well. Trade can play an important role in reducing poverty because it stimulates economic growth, ensuring that even the poor can benefit from this boost to growth and development. According to Fergusson's (2005) study, living standards in developing countries are not reaching those of developed countries. They have made some progress, but they still lag behind developed countries and their living standards. What sets developing countries apart from poorer countries is their openness to free trade, as stated in Ferg... halfway through the paper... and the cons 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 gain from free trade while others lose. Works Citedx Tupy, M. L. (2006). Free trade benefits everyone. Retrieved from http://www.cato.org/pub_display.php?pub_id=5354Sanchez, F. (n.d.). International Trade Administration. Retrieved from http://trade.gov/fta/(nd). Retrieved from http://www.stopftaa.org/what-is-free-trade.phpWorld Trade Organization. (13J). Retrieved from http://www.wto.org/english/news_e/pres00_e/pr181_e.htmTrade Agreements. (n.d.). Retrieved from http://www.ustr.gov/trade-agreementsOxfam education. (n.d.). Retrieved from http://www.oxfam.org.uk/education/resources/milking_it/milkingit/information/the_issues/free_trade.ht