Disadvantages International Trade

      International trade does fetch revenue for a nation’s economy but it does cause lot of problems within the nation too. However, it does not just bring nations together but also brings in different cultures and tastes. There are many factors that needed to be understood before entering into international trade. This applies to individual traders as well. More..

Also referred as free trade agreement, the International Trade Agreement (ITA) is a treaty between two or more nations to ensure that commodities and services are exchanged without any kind of regulation or tariff. It is also known as Free Trade Agreement (FTA).

As of today, the US maintains FTA with fourteen other nations. The US maintains ties with nations like Bahrain, Australia, Canada, Dominican Republic, Chile, El Salvador, Honduras, Guatemala, Israel, Mexico, Jordan, Morocco, Singapore, and Nicaragua.

Different trade agreements like Asia-Pacific Trade Agreement (APTA), North American Free Trade Agreement (NAFTA), African Free Trade Zone (AFTZ), South Asia Free Trade Agreement (SAFTA), European Free Trade Association (EFTA), and Pacific Island Countries Trade Agreement (PICTA) are presently incorporated. The agreement helps developing countries across the globe to a large extent. It helps these nations to export commodities like handicrafts, jewels, fruits flowers, spices, tea, coffee and many other raw materials to all the developed countries.

The WTO (World Trade Organization) makes sure that the trade between developed and developing nations is carried out smoothly thereby resulting in friendly relations. Most of the countries who decide on the primary regulations and rules associated with WTO belong to developed category and hence, at times developing nations do face issues that can be termed as dominating. Free trade agreements do protect nations from various custom formalities and free trading areas.

Due to free international agreements, there is free movement of labor, services, technology, and capital among different nations. The developed countries are eager to share their expertise to the underdeveloped or developing countries. This also has resulted to sharing of market information and having free access to distant markets. The need to start such an agreement was a right move made by all the nations. It has not only achieved the motive but has got nations together to solve lot of other issues like terrorism, poverty, health care and environment protection.

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• Definition Of International Trade Agreement
• Disadvantages International Trade
• Four Theories Of International Trade
• History Of International Trade
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