free trade areas

unclebutcher SG

what are the benefits and cons of a FTA in a nutshell?

maurizio13 SG

http://hsc.csu.edu.au/economics/global_economy/tut7/Tutorial7.html

allentyb_v2.01 SG

Able to enjoy more variety of goods from other country at a cheaper rate

example of one of the FTA between US and singapore, now you get to buy chewing gums from pharmacy..................................

AndrewPKYap SG

FTA usually stands for Free Trade Agreements...

FTA is short for:

Meaning Category
Failure to Appear Community->Law
Fast Technology for Analysis Computing->Software
Fault Tree Analysis Academic & Science->Electronics
Federal Transit Administration Community->Educational
Governmental->Transportation
Federal Tuition Assistance Academic & Science->Universities
Feed Tray Assembly Governmental->Military
Field Training Activity Governmental->Military
File Transfer Agent Computing->Networking
Filtering Transformation and Aggregation Academic & Science->Mathematics
Financial Futures Market Amsterdam Business->General
Finest Training Available Community->Educational
Fire Traffic Area Governmental->State & Local
First Time At .... Internet->Chat
Flexographic Technical Association Community->Non-Profit Organizations
Flinders Technical Associates Business->Firms
Fluorescent Treponemal Antibody Medical->Laboratory
Foam Test Apparatus Governmental->Military
Free Throws Attempted Community->Sports
Free To Air Community->Law
Free Trade Agreement Business->International Business
Governmental->US Government
Free-To-Air Television Community->Media
Freignt Transport Association, UK Business->Firms
From The Album Community->Music
Full Test Approval Academic & Science->Electronics
Fun, Travel, and Adventure Governmental->Military
Miscellaneous->Hobbies
Fundamental Theorem of Algebra Academic & Science->Mathematics
Funkier Than All Miscellaneous->Funnies
Futuna Island, Vanuatu Regional->Airport Codes
Future Teachers Association Academic & Science->Universities
Future Teachers of America Academic & Science->Universities
Future Terrorists of America Governmental->Military
Warrant Failure To Appear Bench Warrant Governmental->Police

maurizio13 SG

In all Economic books, they always advocate Free Trade based on the theory of Comparative Advantage.

In such a situation, it's beneficial to engage in Free Trade as the quantities produced for computers and apples, will far exceed what both countries would produce if they had decided to produce at their own combination of both products. This is irregardless of the country's efficiency in production, whether you are efficient or inefficient, you tend to gain from Free Trade.

maurizio13 SG

But we know that we can't produce our products indefinitely, to whatever quantities we want. So what if the world demand and supply for both computers and apples has an equilibrium quantity.

So is Free Trade really beneficial for all participants?

If the world demand has an equilibrium, it's only beneficial to efficient countries.

unclebutcher SG

thanks! i've got an econs project on ftas Mr. Green

maurizio13 SG

Anyway the last idea debunking comparative advantages of trade is my own, I don't think you should put it in your report, lest you want your teacher to flunk you. It's not a proven theory.

Mr. Green