FREE TRADE

Free Trade & World Trade Organization

Free Trade & World Trade Organization

Introduction

International business and globalization has lead to a dramatic increase in the free trade among the countries of the world. The free trade among the countries ahs significantly increased over the past decade. There are several factors that have contributed to the increase of the international trade that is free of tariffs. The concept of free trade is not new in the globalized world but the intervention of different authorities and institutions and the demand for more goods in lower costs have resulted in the progression and development of the free trade around the world. The ancient view of free trade was a little confined and conservative that did not allow the products of other countries to easily enter into the local markets. These concerns have been reduced to some extent and they are eliminating with a fast pace in the modern world.

The agreements and policies of World Trade Organization have contributed to the success of free trade among the different countries of the world. The counties that initially did not open their orders for free trade have now accepted the proposals of free trade and investments. There are several advantages of international trade that have attracted the economies to implement and accept the proposals of international and free trade with other economies and counties. The world trade organization has announced a free trade agreement in which countries should carry out international trade with each other in order to strengthen the economic conditions of the globe (Carbaugh, 2010). However, there are some concerns in several economies that restrict them from accepting the free trade agreement of world trade organization. This paper discusses the significance of the free trade agreements, the role of WTO in increasing the international trade through free trade agreement and an analysis of the arguments presented by countries that are against the free trade agreements.

International Business and Free Trade

With the advent of globalization, the concept of international trade and free trade has been increased with a dramatic rate. The concept of globalization has become an irreversible phenomenon for the countries around the world. The globalization has resulted in the reduction and elimination of barriers and obstacles in the free trade among the countries by providing attractive opportunities and investment outlooks. There is an increased level of capital flight, exchange of skilled labour and transfer between the technologies. Large and multinational organizations are already taking advantage of the free trade businesses opportunities and international trade. Some of the small and medium sized companies have now entered into the most lucrative industry of international trade. Some countries that initially refrained from enabling the free trade with other counties are also joining in hands with the foreign nations and taking the advantage of international trade. The relaxation in the rules and regulations by the authorities and institutions has significantly contributed to the increase in the international trade. They allow the smooth capital flow, earning of foreign ...