" free trade promotes regional division of labour, enhances potential real national product & makes possible higher standard of living."Explain?

International trade increases the size of a firm’s market,
resulting in lower average costs and increased productivity, ultimately leading to
increased production. Free trade improves the efficiency of resource allocation.
Increased competition promotes innovative production methods, the use of new technology,
marketing and distribution methods.
Employment will increase in exporting
industries and workers will be displaced as import competing industries fold (close
down) in the competitive environment. With free trade many jobs have been created
especially in manufacturing and service industries, which can absorb the unemployment
created through restructuring as firms close down or downsize their workforce. The
countries involved in free trade experience rising living standards, increased real
incomes and higher rates of economic
growth.

• When countries move to free trade and
  labor is immobile, in the export industry the real wage with respect to the exported
  good remains constant, but the real wage with respect to the import good rises in both
  countries.


• When countries move to free trade and labor is
  immobile, in general, workers in the export industry benefit, while workers in the
  import-competing industry lose.


• Improvements in
  production efficiency mean that countries can produce more goods and services with the
  same amount of resources. In other words, productivity increases for the given resource
  endowments available for use in production.


• reflected
  empirically in an increase in the country’s gross domestic product (GDP). This means
  that free trade would cause an increase in the level of the country’s national output
  and income.