The Main Goals Of Free Trade Agreements - 1186 Words

One of the main goals of free trade agreements is globalization. Globalization, or global free trade, is the creation of trading connections between countries throughout the world (Globalization). Globalization stresses free trade. Free trade is when tariffs are reduced or eliminated on exports or imports. Tariff tax percentages added to US imported goods have dropped dramatically from about 60% in the 1930s, to lower than 10% in 2005 (International). With less money taxed on products, corporations can expand, increase trade, and generate more revenue. Focusing on just the US, the value of goods traded with Canada was about $562 billion, and Mexico was $347.3 billion, in 2007 (International). Although globalization sounds very beneficial to the US economy and other countries economies, there are concerns of globalization being one-side. Due to the increase of free trade between trading countries, globalization was supposed to cause economic growth and improve living conditions in underdeveloped countries (International). Yet local business and farmers in countries like Mexico, are not getting a lot of business due to so many imported goods from large foreign corporations entering the market (Globalization). All the profits go back to multi-national corporations in more developed countries like the US (International). On top of that, there is the fear that because these multinational corporations are growing wealthier, they will have more influence overShow MoreRelatedThere Are Two Types Of Trade Agreements Between Countries:1192 Words   |  5 PagesThere are two types of trade agreements between countries: free trade and fair trade. Free trade is more commonly known because this is the type of trade agreements that have overpowered in the past few decades to create trade policies between countries. 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