World is pro free trade but it is not beneficial for everyone. Some will be gainers and some will be losers. The gainers will compensate the losers. But How...? Under WTO safety nets program is designed to distribute resources among losers after getting from gainers. Who will do it...? Are we looking towards the government who is very inefficient due to high transaction cost including corruption and high maintained status quo and hierarchy? In the corruption index we are among the list of corrupt countries, though improved in the last few years.
This is one problem which we might face under free trade. Another problem is that the losers will lose the job as well as money. If they get do not get required amount of money to live their standard life they’ll be deprived off what they were having without free trade. Moreover, we are ignoring the component of satisfaction here. A person who was previously working is either unemployed or working at some place where he does not want to work. In other words his job satisfaction is zero compare to his/her previous job, hence the overall satisfaction. If the person remains unemployed for a longer period of time he thinks of many different thing including shake hands with the extremist element, become a thief or a dacoit. Thus unemployment is definitely a social evil which is very high right now in our country.
From the above can we conclude that unemployment or dissatisfaction from employment could be a big cause of terrorism? After all this do we need blind eye free trade or we need to see pros and cons of free trade for our own country, first solve those issues and then pursue for free trade.
P.S. During the last one decade of low growth and higher unemployment, inequality has increased. Moreover, unfortunately frustration has increased which leads to intolerance. Unemployment and several other factors has increased the possibilities of terrorits activities