Cross National Agreement Essay Example | Topics and Well Written Essays - 750 words

Cross National Agreement - Essay spokespersonTrade agreements stimulate and facilitate sight between opposite countries through the complete or incomplete elimination of unfair flip tariffs. Another main objective of economic integration is to increase industrial efficiency through economies of scale which refer to increased levels of productivity related to increased levels of output of altogether member states of the economic union therefore leading to lower costs and higher productivity. Some of the different stages of economic integration between countries be (Tutor2u, 2012) a) Trade agreements - be formal negotiations between two or more countries where they negotiate lower import tariffs and work to facilitate the bureaucracy and paper work bear on in the export and import of goods and serve between member countries. b) Trade Liberalization ( complimentary Trade Agreements) - In principle it eliminates barriers to unaffectionate trade by eliminating unfair tariffs an d entry barriers between member states or nations. It elevate establishes standard import tariffs for non-member country imports into the free trade zone. During the last two decades there has been a pregnant growth in international trade agreements, specifically Regional Trade Agreements, most of them have been free trade agreements with a focus in reducing tariffs and other artificial barriers of trade between participants. The pairing American dispatch Trade Area (NAFTA) and the European Free Trade Area (EFTA) are some(prenominal) good exemplifications. ASEAN (Association of South East Nations), and Mercosur are two additional examples. c) Custom Union - Some agreements are more encompassing and sophisticated such as the European Union (EU) where not single is trade policy regulated, but it establishes common external tariffs for non-union members. It also regulates and oversees the regional rules concerning flows of capital, agreements on financial policy, disceptation, environmental regulations, practices and exercise and regulation of labor. d) Common Market-Where a group of countries integrate all its participants into a single integrated market. Free movement of capital, labor and services among members is the trademark of single markets. e) Single Currency(Monetary Union)-The European Union, by adopting an economic impersonate of a Custom Union with a single common currency the Euro, is a perfect example of a highly integrated regional economy. f) Economic Union-(combines Custom Union/Common Market) There are both pros and cons to free trade agreements. Free trade can help drive healthy competition between industries therefore providing better products and prices to its consumer base. Trade agreements can help provide countries with a competitive reinforcement where countries can specialize in products and services that they do and produce most efficiently. It has been argued that the increased productivity only applies to the increased agg regate wealth and not how fairly increased income will be distributed among its participants (White, 2012). It has been proposed that free trade is a catalyst that helps foster peace between nations through functional and economic interdependence as well as providing a basis for healthy for overall economic growth of all nations involved. Free Trade agreements also tend to negate the practice of economic Protectionism, which is widely practiced by many an(prenominal) countries to protect their own economies when Free Trade Agreements are not enacted between countries. Simply stated the array country imposes high import tariffs and other unfair trading regulations on foreign competing products or services which by limiting the consumer markets this practice tends to create higher prices and