Introduction Free trade does not support local firms to grow in the developing world. This paper supports the debate argument that free trade will inhibit the flexibility of developing countries to use trade policy for industrial development and could leave firms in developing countries worse off. The case study used is Syria. Shortcomings of free trade Growing industries In the developing world, infant firms cannot gain competitive advantage in the context of increased levels of competition from foreign companies. Major exports of Syria  Major imports of Syria Crude oil               Machinery              Fruits                  Metal products         Vegetables              Chemical products      Petroleum products      Yarn                   Wheat                   Paper                  Live animals            Livestock products      Figure 1. A summary of the major imports and exports of Syria. Senile industries It is notable that most governments in the developing world are not adequately funding their local firms to expand. This is also the case in Syria. Anti-dumping laws The non-existing anti-dumping laws in the nation would result in many sub-standard products being sold, which could negatively impact host business organisations. It might be difficult for local firms to diversify the economy of the country due to the impacts of free trade. Environmental degradation In the developed world with strict environmental laws, firms might take their production centres to the developing world where they cause massive pollution. This has been witnessed in Syria. Critical awareness of the complex nature of international trade Four main players are involved in facilitating cross-border trade (Daniels, Radebaugh & Sullivan 2012). First, an exporter is identified as the country taking products to another nation. Second, an importer is the country that purchases products from another nation. Third, an exporter’s bank ensures that the right procedures are followed with regard to payments. Fourth, an importer’s bank pays an exporter on behalf of its client. With regard to Syria, cross-border trade is conducted within established legal frameworks that aim at fostering high levels of legality (Daniels et al 2012). Qualitative and quantitative analysis of trade exchanges When analysing the level of trade in the Arab world, it is essential to look at the amount of trade with regard to the value of products and the number of countries involved. For example, in 2013, Syria exported products worth $12.66 billion while it imported products worth $13.8 (Atlas Media n.d). The following countries were the trade partners of the country: Iraq, Saudi Arabia, Libya, United Arab Emirates, China and Kuwait. It is notable all the main trade partners of Syria were from the Arab world (Atlas Media n.d). Thus, it could be argued that free trade limits host firms to regional business transactions. Main exporters of Syria  Main importers of Syria Kuwait                   Kuwait                  The UAE                  The UAE                 Kuwait                   Kuwait                  Iraq                     Iraq                    Saudi Arabia             Saudi Arabia            Egypt                    Egypt