chapter8 - Chapter 8 International Trade Agreements To...

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Chapter 8 International Trade Agreements To understand what a regional trade agreement is. To understand the trade creation and trade diversion effects of regional trade agreements. To examine how international trade agreements affect labor issues. To examine how international trade agreements affect environmental issues. Countries will often enter into a trade agreement to reduce trade barriers between themselves. A pact to reduce or eliminate trade restrictions. The WTO is a multilateral trade agreement, involving many countries, all with the goal of reducing tariffs between member countries. WTO has negotiated many trade agreements. Under the most favored nation principle , the lower tariffs agreed to in these negotiations must be extended equally to all WTO members. New members get these benefits, but must also agree to lower their own tariffs. Regional Trade Agreements
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This note was uploaded on 02/17/2012 for the course EC 340 taught by Professor Ballie during the Spring '10 term at Michigan State University.

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chapter8 - Chapter 8 International Trade Agreements To...

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