Question

Find an article on an international free trade agreement. How does the reality of the free trade agreement relate to what the theory states?

Answer 1

Answer:

Free trade Agreement :-

This may be referred to mean the treaty between two or more countries whereby both countries faciliates each other by the trade and the eliminating trade possible as far as they can . It mainly is to emiliminate any barriar which exist or which many come between the trade of two countries in the international trade as it stay away the hurdles of international trade so that the countries can promote trade with each other easily without any barriar this is referred to as the international free trade agreement .

The trade is very benificial if this is free trade between the countries as this ensures the better technology import , Better goods services , Better prices goods , Innovation , High life level , High Economic level Hence free international trade is benificial .When this agreement is done between the two and more countries it is called free international trade agreement .

Elimination of hurdles in international trade can be for example :-

Import duty levied by a country can be minimized or remooved so that goods of foreign country get cheaper to domestic country and it is bought within the country hence promote trade between international countries freely or not banning the goods import from any particular country is also free international trade.

Reality of free Trade :-There are three types of trade barriers: Tariffs, Non-Tariffs, and Quotas. These Trade barrier are restrictions imposed by the government for import and the export .

Now a days Mostly trade in every country is free trade although on some goods the tariff is levied and non tariff is also levied and quota to import is also decided beyond which cant be imported .few countries due to some issues dont trade with some countries due to their political problems . But mostly the countries at global are promoting the free trade in every goods services . The trariffs on imports are also very minimized .On some goods these may be higher .

Hope you Like Answer Hit Thumbs up and Give us feed back . Ask your Doubts in comments on Problem if any.

All the best Friends for your examination and most welcome