Question

What is Free Trade Agreement?

Answer 1

Today no economy is self-sufficient it directly or indirectly depends on other due scarcity of the economic resource. The economic integration is a process whereby two or more countries from an organization and abolish the all the tariff between the member countries.

Under free trade agreement members, countries abolish the all the tariff and quotas between members countries.

The advantages of the Free Trade Agreement

• The unnecessary competation between countries eliminated
• The economic resource optimally utilized
• The countries can divert more recourse for producing comparative advantage goods
• The cost of the goods falls and hence price of the goods will fall
• The consumers are benefited due to low rice and more goods are available for consumption.

This stage is second stages o the economic integration.