Under the FTA, the prices are a clear
reflection of correct supply and demand meaning that they are the sole
determinants of allocation of resources. Free trade is different from
other trade policies in which the allocation of services and goods
between trading countries is determined by simulated prices that might
not represent the correct nature of the supply and demand. The
artificial prices are usually the result of protective trade policies
where governments interfere in the market by supply restrictions and
price adjustments. These government interferences can decrease or
increase the total costs of services and goods to both the producers and
consumers. There are various benefits of FTA and the fundamentally undeniable benefits of foreign trade agreements are :
A . They promote competition and innovation.
It makes great economical sense to purchase goods from a company that specializes in producing them easily and at a much cheaper price. One exports in order to acquire services and goods in return. Free trade offers customers the best opportunities and the most choices to improve their living standards.
B.They generate long-term , sustained economic growth.
Through fostering opportunities, FTA rewards risk taking through increasing sales, market share and profit margins. Companies can opt to build on these profits through expanding their operations, producing better paying jobs and entering new sectors in the market. This helps to generate economic growth due to the expansion of these companies as well as the creation of new job opportunities.
A . They promote competition and innovation.
It makes great economical sense to purchase goods from a company that specializes in producing them easily and at a much cheaper price. One exports in order to acquire services and goods in return. Free trade offers customers the best opportunities and the most choices to improve their living standards.
B.They generate long-term , sustained economic growth.
Through fostering opportunities, FTA rewards risk taking through increasing sales, market share and profit margins. Companies can opt to build on these profits through expanding their operations, producing better paying jobs and entering new sectors in the market. This helps to generate economic growth due to the expansion of these companies as well as the creation of new job opportunities.
No comments:
Post a Comment