Answer to Question #234465 in Economics for Khwisti

Question

Stiglitz (2019) wrote that “trade agreements advanced corporate interests at the expense of workers in both developed and developing countries.

a. Do you agree or disagree with this statement? 

Discuss why you agree or disagree with this statement tapping into the comparative advantage theory as the basis for your argumentation 50 marks

b. Reflecting on your values, ideology, personal life and social process, discuss political and socio-economicrealities that shape the Africa Continental Free TradeArea system and the implications for countries and SMMEs . 50 marks

Answer 1

a. A free trade agreement is a pact between two or more nations to reduce barriers to imports and exports among them. Under a free trade policy, goods and services can be bought and sold across international borders with little or no government tariffs, quotas, subsidies, or prohibitions to inhibit their exchange. The positive effect of such trade occurs for both countries. So, I don't agree that such trade occurs at the expense of workers.

b. The African Continental Free Trade Area (AfCFTA) represents an important milestone in achieving an economically integrated Africa and governments should invest in basic education and skills development, and strive for education reform that will facilitate the unimpeded participation of young people in the socioeconomic development of their countries.