OutsourcingReducing tariffs on imports allows foreign industries to expand into other countries. The application of outsourcing sometimes causes unemployment problems in the domestic economy. Multinational companies can outsource jobs to emerging market countries without adequate labor protections. This means that the smaller economy may suffer more from free trade agreements. Say no to plagiarism. Get a tailor-made essay on "Why Violent Video Games Shouldn't Be Banned"? Get an Original Essay Intellectual Property Laws for the protection of new inventions and development are not available in many countries or the laws that do exist are not always strictly enforced. As a result, valuable inventions and ideas could be stolen. Crowding-Out Effect of Domestic Industries If foreign goods were freely imported, the domestic industries of developing countries would not be able to develop rapidly due to the superior strength of foreign industries. In many underdeveloped countries the most important employment sector is agriculture. These small family farms cannot compete with subsidized agricultural enterprises in developed countries. As a result they lose their farms and have to look for work in the cities. This means that the smaller economy may suffer more from free trade agreements. This exacerbates unemployment, crime and poverty. Degradation of Natural Resources Emerging market countries often lack many environmental protections. Free trade leads to the depletion of timber, minerals and other natural resources. Deforestation and mining reduce jungles and fields to wastelands. Destruction of Native Cultures As development moves into isolated areas, indigenous cultures may be destroyed. Local populations could be uprooted. Many suffer from diseases and die when their resources are polluted. Sometimes, the importer may import expensive and harmful foreign goods. Reduced tax revenue. Many smaller countries struggle to make up for lost revenue due to tariffs and import taxes. Please note: this is just an example. Get a custom paper from our expert writers now. Get a Custom Essay Build an Empire Under free trade conditions, foreign traders, especially dominant ones, may attempt to become empire builders in the future. In the past, free trade gave rise to colonialism and imperialism