Free trade area
Free trade area
A free-trade area is a trade bloc whose member countries have signed a free-trade agreement (FTA), which eliminates tariffs, import quotas, and preferences on most (if not all) goods
and services traded between them. If people are also free to move
between the countries, in addition to FTA, it would also be considered
an open border. It can be considered the second stage of economic integration.
Countries choose this kind of economic integration if their economical
structures are complementary. If their economical structures are
competitive, it is likely there will be no incentive for a FTA, or only
selected areas of goods and services will be covered to fulfill the economic interests between the two signatories of FTA.
http://www.eximguru.com/exim/trade-agreement/default.aspx
No comments:
Post a Comment