Question

Case Study Assignment: Submit a paper answering the following questions: 1. Describe the difference between a unilateral and multilateral trade agreement 2. Give 2 examples of a multilateral trude approach 3. How is NAFTA classified?

Answer 1

Answer: Cu Difference between unilateral and multilateral trade agreement: - The difference between unilateral and multilateral approaches to achieving free trade is that a country can on its trade on its own (e) without remove all restrictions In expecting others to do so. • This approach is known as the unilateral approach. • Great Britan took the unilateral approach in the 19th century in recent years, as have chile and south Korea approach to achieve free trade refers to The multilateral the action of countries to reduce its trade restrictions same. (ie) it can bargain while other countries do the with other trading partners to reduce trade restrictions.

(2) Examples of multilateral trade approach are: 50 An example of multilateral approach is NAFTA (North American Free Trade Agreement), which is in 1993 lowered trade barriers among the us, mexico, and canada. Dominican Republic Free (2) The central American PRENDRE trade Agreement was signed on August 5, 2004. eliminated tariffs on more than 8oy of • CAFTA-DR vis exporte to six countries in clodes Costa Rica, Dominican Republic, quatemala Hondoras, Nicaragua, and El salvandor. (3) NAFTA classified free trade agreement is negotiated 1- North American between canada united states and mexico for having

easy exchange of goods and services among of the countries and removing banniens. It eliminated tomiffs and duties between the countries "The significance and purpose is the economic prosperity of the three countries and enhanced trade relatine • NAFTA began on ist Jan 1994 and it completely removed duties on all items by 1st Jan 2008. • NAFTA established liberalisation of trade between the 3 countries which stimulated economic growth and helped to gives eaual access to market.