ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -FTAs can force local industries to become more competitive and rely less on government subsidies. They can open new markets, increase gross domestic product (GDP), and invite new investments. FTAs can open up a country to degradation of natural resources, loss of traditional livelihoods, and local employment issues.

Detailed explanation-2: -Lower Global Prices. For consumers, free trade creates a competitive environment where countries strive to provide the lowest possible prices for their resources. This in turn allows manufacturers to provide lower prices for finished goods, ultimately increasing the buying power for all consumers.

Detailed explanation-3: -International trade allows countries to expand their markets and access goods and services that otherwise may not have been available domestically. As a result of international trade, the market is more competitive. This ultimately results in more competitive pricing and brings a cheaper product home to the consumer.

Detailed explanation-4: -Free trade agreements (FTAs) help expand global market opportunities for U.S. producers and exporters. Bilateral and multilateral trade agreements strip away trade barriers, reduce or eliminate tariffs, and promote investment and economic growth.

Detailed explanation-5: -By broadening markets, concerted liberalization of trade increases competition and specialization among countries, thus giving a bigger boost to efficiency and consumer incomes. Second, multilateral reductions in trade barriers may reduce political opposition to free trade in each of the countries involved.