- Encourages single sided development since industries with comparative advantage develops to the neglect of others
- Substandard and harmful products may be produced and traded leading to dilution of social welfare
- Dumping is encouraged which discourages development of local industries
- May lead to exploitation and colonisation
- Promotes unproductive competition which leads to closure of infant industries
- Presupposes the existence of leissez faire and working of price mechanism under perfect market which are unrealistic
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