Question

What are FTAs (Free Trade Agreement) impacts on commercial enterprises?

Answer 1

Explanation:

Free trade agreements allow economies of different country to do trade in between them with lower tariff and reduces duty on trades. Import and Export becomes free and people have experience of foreign goods with lower rates. Big business import and export different product under lower tariff and duties and because of that consumer can have international brands at affordable rate so they will avoid local grown product that will directly impact the small enterprises. Small enterprises will have direct competition imported goods to which they cannot compete and in order to survive in market they have to lower their product rate which reduces their profit.

Competition get increased as they have to rival international brands as well as they lose employees to them because people want to have more salary and better future for themselves. Small industries have to attain higher standard of quality and that result into higher cost for them.