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4 Pages • Essays / Projects • Year: Pre-2021 • Previously uploaded under: BBA102 - Principles of Management
Free trade agreements (FTAs) otherwise known as trade liberalisation are international treaties designed with the intention of obliterating trade barriers so as to advance economic growth and commercial relations between national economies. Economies which practice free trade policies create an environment which fosters financial prosperity and opportunities, however, FTAs such as the Trans-Pacific Partnership (TPP) are equipped with the propensity of having an adverse effect upon key stakeholders which is inconsistent with the objective of FTAs. Proponents of FTAs argue that FTAs allow economies to obtain exponential GDP growth, labour productivity as well as a general decrease in unemployment rates. However, FTAs also have the propensity to cause domestic unemployment within developing countries and the erosion of labour standards. Due to the controversial nature of FTAs, it is imperative to evaluate the disadvantages and advantages of FTAs to reach a justifiable conclusion.
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