Free trade agreement

Solo disponible en BuenasTareas
  • Páginas : 3 (583 palabras )
  • Descarga(s) : 0
  • Publicado : 28 de febrero de 2012
Leer documento completo
Vista previa del texto
Free Trade Agreement, advantages and disadvantages.

Free trade agreement is an economic system which intends to bring together the countries who want to make this alliance, also to export freely(no barriers), without these barriers countries don’t have to pay exportation taxes; this is a very important advantage that this agreement has, therefore, in order to find out if being in this societyis a benefit or a bad idea for a country, we’ll see some of the advantages and disadvantages of being in a free trade agreement.
First of all I’m going to talk about the advantages, the mainadvantage is that there’s no taxes, with this countries can save a lot of money, I mean they can get into another country which would be in the agreement and the country can sell freely its products becausethere’s no taxes, the second one is that the products exported from other countries are really cheap, so people can enjoy new and modern clothes, food, and technology, services and good quality onthese issues, in addition to this the country can improve these economic and products key points by competing with its partner, by doing this they reach economic stability with each other, anotheradvantage is that the employment will increase especially in the exporting industry, but when good things comes it also brings bad things (but those disadvantages are mentioned on the next paragraph),talking about economic growth, by being in a free trade industries can improve themselves in order to be able to compete with the foreign industries.
Changing the topic, now lets see some disadvantages,the main one is that if a country is not competitive enough can be consumed by the foreign companies and at the end of the day it will be massive loss of jobs causing chaos in the economy and theother country will take the control over this one, summarizing the foreign companies will have no competition on that country, can you imagine being practically colonized by others, is a bad view,...
tracking img