Published by:
Allied Business Academies
Length: 13 pages
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Abstract
A limited study of student's knowledge about international trade policies revealed that few students are aware of the scope of international trade in general and in the western hemisphere specifically. This ignorance is reinforced by differing special interest groups who seek protectionist measures for their own industries. These same groups campaign on the immediate negative effects of free trade agreements as opposed to the greater positive long run benefits of international trade and cooperation. Mercosur (trade union in South America representing 200 million consumers and a one trillion dollar market) has recently experienced economic difficulties but is expanding its trade relations with other countries. Mercosur is preparing to make an important decision about which international trade organization to join. Although there is building pressure to formalize the Free Trade Agreement of the Americas (FTAA), hurdles exist. As the European Union and the North American Free Trade Agreement partners extend their reach around the world, the Mercosur partners will need to decide which will be most beneficial for them in the immediate term. Hurdles such as currency stabilization, change in governmental policies by member states, labor unions, and most importantly, the economic illiteracy of the composite populations in respective countries will need to be overcome.
About
Abstract
A limited study of student's knowledge about international trade policies revealed that few students are aware of the scope of international trade in general and in the western hemisphere specifically. This ignorance is reinforced by differing special interest groups who seek protectionist measures for their own industries. These same groups campaign on the immediate negative effects of free trade agreements as opposed to the greater positive long run benefits of international trade and cooperation. Mercosur (trade union in South America representing 200 million consumers and a one trillion dollar market) has recently experienced economic difficulties but is expanding its trade relations with other countries. Mercosur is preparing to make an important decision about which international trade organization to join. Although there is building pressure to formalize the Free Trade Agreement of the Americas (FTAA), hurdles exist. As the European Union and the North American Free Trade Agreement partners extend their reach around the world, the Mercosur partners will need to decide which will be most beneficial for them in the immediate term. Hurdles such as currency stabilization, change in governmental policies by member states, labor unions, and most importantly, the economic illiteracy of the composite populations in respective countries will need to be overcome.