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What are the major reasons for the skepticism of many developing nations regarding the comparative -advantage principal and free trade ?

Looking for an original answer, not ans that copy and paste straight from google. Thanks for your help .
What are the major reasons for the skepticism of many developing nations regarding the comparative -advantage principal and free trade ?

Looking for an original answer, not ans that copy and paste straight from google. Thanks for your help .

Explanation / Answer

There have been many debates about the welfare impact of free trade among the economists and policymakers. Some are of the view that free trade with advanced economies only led to deterioration of terms of trade and welfare loss of developing countries, while others contradict the view. One of the famous arguments against the free trade with the developed countries is posed by the economists Prebisch and Singer. According to them, developed countries are mainly exporters of manufactured goods while on the other hand, developing countries are exporters of primary goods. It usually happens that the price of primary commodities declines relative to price of manufactured goods over the long-term, which causes the terms of trade of primary product-based economies to deteriorate. Further, primary goods are basically of income inelastic demand, even if foreign income increases, the demand for primary goods does not increase much, while manufactured goods are income elastic, so increase in income in foreign countries significantly improves terms of trade for manufacturing countries. This is the reason why developing countries see comparative-advantage and free trade with suspicion.

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