In the following research analysis on trade agreement among different countries in the entire world, will provide an extend explanation on the analysis of pros and cons within five different agreements and a brief explanation of trade agreement and the reasons for the implementation of the trades to the countries. The purpose of this analysis is to demonstrate how trade agreement may appear to be a benefit for the countries in respect and even for the entire world yet, once analyzing and obtaining information from various reliable sources it is understood that sometimes some countries take advantage over the small countries or some get more benefits than the other. Therefore, this research will provide the reader the two options of the pros and cons on each trade in order to be able to understand that there are always negatives and positive in every situation.
Pros and Cons of the Trade Agreements
There are numerous trade agreements from all over the world, which creates a bond with different nations that have a common goal to attain economic growth. Also, trade agreements are signed due to the scarcity of resources, leading them to search of better opportunity cost with other nations to replenish what each other lack in resources. For this reason, the agreement of Colombia (TPA), Mercosur (Common Market of the South), SACU FTA (Southern African Customs Union Free Trade), COMESA (Common Market for Eastern and Southern Africa) and EFTA( European Free trade agreement) were signed with the purpose to create a plethora of opportunities to countries and the improvement of the world economy.
However, trade agreement could sound and be one of the best options to obtain better opportunity cost and have more imports and exports as in the case of free trade agreements or a better relationship within in the country and the entire world. In addition, trade agreement establishes great relationship created with the purpose to improve the world in every case scenario. But, like in most situations there are pros and cons once making a decision, both countries will not have the same benefit as the other, as it is shown the agreements mentioned previously and analyzed throughout the research.
Trade agreements Name of the agreement | Countries Involved | Date agreement implemented | Pros of the agreement | Cons of the agreement | Mercosur (The Common Market of South America) (BBC,2012) | Argentina,Brazil,Uruguay,Paraguay and now Venezuela (BBC,2012) | March, 1991(BBC,2012) | Mercosur trade agreement brings in harmony and integration among the states of South America, improving the economy and bringing benefit for each other. Proving trading and investments that booms the economies of the different states in this area(Pavilo,2003. This trade counts with the participation of Brazil, a state that is rapidly growing. (Pavilo,2003)It provides more security and seeks to expand more the import and export from outside and inside members of the trade. (Pavilo,2003) Each nation tends to reach each other at the moment of crisis, in order to maintain strong economy and a strong continent.(Pavilo,2003) The trade has reduced tariffs creating an increase in trade flows and investment. Going from a volume of 10.5 Billion to 856 Billion. (Pavilo,2003) | Critics argue that Mercosur it is in a “stand by” mode, losing it is credibility of integration among the nations of South America.(Pavilo,2003) The several differences between the economies has created tension among the countries, Argentina and Brazil have been a potential in South America and among the member therefore, creating disagreements.(Pavilo,2003) In addition the organization and trade has gone out of its goals to become more of a political dispute due to the different political parties in South America and the member itself.And therefore, creating problems in the trade leading to suspension in the upcoming events and trade.(BBC,2012) |
Name of the agreement…