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Free Trade

In: Business and Management

Submitted By Girisugi
Words 4391
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MASTER IN BUSINESS ADMINISTRATION

INDIVIDUAL ASSIGNMENT

SUBJECT: MANAGING IN THE ECONOMY

SUBJECT CODE: MGT6233

NAME

:

GIRISH S/O GOPAL 810602 -01 – 6275

I/C

:

STUDENT ID :

01130024

LECTURER :

MS.SANDRAKALA

2

Executive summary

Free trade refers to trade between countries without tariff and non-tariff barriers on exports and imports. In another word, free trade refers to trade without government interference. Classical economists such as Adam Smith and David Ricardo have advocated that free trade improves the economic well being of a country by increasing the production of a country and allowing efficient allocation of resources, thus increasing global production and promoting peaceful and prosperous global environment. In the global basis, World Trade Organization formed after GATT in 1995 promotes trade liberalization through multilateral negotiation. On the other hand, in the regional basis, countries are forming regional economic integration to promote free trade stage by stage. The initial stage is known as Free trade areas (FTAs) under which they agree to remove tariffs and non-tariff limitations on trade in products between themselves. Despite all these initiates, governments around the world are still imposing various restriction on trade between countries to protect its own industries such as agriculture which is considered as the backbone of a country. Therefore, this report will discuss the concept of free trade, trade theories and the advantages and disadvantages of Free Trade for consumer, business, environment and politics. Also analyze why a region need Free Trade Area, benefit for developing countries. Summarize advantages and disadvantages of Free Trade for consumer, business, environment and politics. In the recent years, the United States has involved or has suggested negotiations to establish bilateral

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