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CASE STUDY 4 PREPARED BY: GOPI A/L KALAIRASAN CASE STUDY 4 1) There are some 200 economic integration agreements in effect around the world already, far more than even a few years ago. Virtually every country is now party to one or more free trade agreements. Supporters argue that free trade is good for nations. a) What is the basis for their support? That is, what are the specific benefits that countries seek by joining an economic bloc? Free trade is a policy by which a government does not discriminate against imports or interfere with exports by applying tariffs (to imports) or subsidies (to exports) or quotas. According to the law of comparative advantage, the policy permits trading partners’ mutual gains from …show more content…

For a sampling of arguments against this proposed pact, visit www.globalexchange.org, www.citizentrade.org, and www.corpwatch.org. Also visit the official site of the FTAA at www.ftaa-alca.org. Based on your reading, evaluate the arguments against the FTAA. a) Do you agree or disagree with the arguments made by the critics? Why or why not? Based on my opinion, I agree with the arguments made by the critics on the implementation of the FTAA. FTAA was a proposed agreement to eliminate or reduce the trade barriers among all countries in the Americas excluding Cuba. The critics were logical because of FTAA which expands as a proven disaster similar to NAFTA. Since NAFTA has proven to be a nightmare for working families and environment, the same goes to FTAA which would similarly lead to the unemployment crisis in the country. Secondly, the FTAA Agreement was being written without the citizens input. Despite repeated calls for the open and democratic development of trade policy, the FTAA negotiations have been conducted without citizen input. Thirdly, the FTAA Agreement would undermine labor rights and cause further job loss. This is based on NAFTA’s experience that shows how the basic labor rights and the interests of working families are eroded by “free trade” agreements that lack enforceable labor protections. Fourthly, the FTAA Agreement is expected to spread

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