Question

In: Operations Management

Most unions have opposed free trade agreements, such as NAFTA. On the other hand, most employer...

Most unions have opposed free trade agreements, such as NAFTA. On the other hand, most employer lobbying groups have supported such agreements. Create an argument for one side or the other.

Solutions

Expert Solution

A free trade agreement is defined as the one in which a pact is signed between two or more countries to improve exports and imports by removing trade barriers. It facilitates buying and selling of goods and services across international borders with little or no trade barriers such as quotas, and tariffs. Most of the employers support it as they are able to generate profit because of the free trade across the international border and contribute to the economy which is a fair deal. Unions, however, opposed it as it will result in increased competition from non-union businesses. The labor worries about the fight for the jobs and benefits that would result because of the free trade scenario. However, when major benefits are considered free trade is a fair deal for the economy of the nation. It will not only facilitate the economy but also help in building the relation across the international border.


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