(for class, i don't have a computer, so this is my way of saving my info)

how does free trade work?

according to wiki: free trade is a market model in which trade in goods and services between or within countries flow unhindered by government-imposed restrictions. Free trade is a term in economics and government that includes:

• trade of goods without taxes (including tariffs) or other trade barriers (e.g., quotas on imports or subsidies for producers)
• trade in services without taxes or other trade barriers
• The absence of trade-distorting policies (such as taxes, subsidies, regulations or laws) that give some firms, households or factors of production an advantage over others
• Free access to markets
• Free access to market information
• Inability of firms to distort markets through government-imposed monopoly or oligopoly power
• The free movement of labor between and within countries
• The free movement of capital between and within countries

what does this mean for the parties involved?

• for the businesses in 'developed' countries, it means the opening of labor markets, places where these businesses can use labor for cheaper (smaller wages), therefore increasing their profit.
• dumping (not illegal, but frowned upon).--this is where the manufacturer in one country exports a product to another country at a price which is either below the price it charges at home, or it's cost of production. This means that businesses in developed countries can sell products cheaper to the 'third world' countries, which takes their market. the developing countries become dependent on these cheaper products (or in some cases, food), and it puts the companies within that country out of business, because it's they can't afford to compete.
• for consumers in the developed country, this means cheaper goods, because the companies that produce them don't have to pay their workers the same standards that apply to the rules at home.
• organizations like WTO and The IMF are the tools that promote free trade. they create the rules of free trade. they are influenced by transnational corporations, and therefore benefit them.
• the institutions that uphold free trade are dominated by
  
  imperial powers.

in developing countries, their economies are dependent on the 'west'

one country having complete control over another's economy. having say in what is produced and traded.