Features and roles of free trade agreements (FTA)

Question 1

FTA

definition

Features x3

Role

Answer 1

• An agreement between two or more countries that facilitate international treaties in order to reduce trade and international barriers.

(Features)
1.) enhance trade and investment opportunities
2.) tariffs and custom duties are reduced, removed or standardised.
3.)standardising imports and exports laws and regulations.

(Role)
-maximise the economic benefits flowing to australia from the negotiations of trade agreements

Question 2

Benefits to Aus business x3

Answer 2

1.) market expansion
-FTA open up access to larger international markets by reducing tariffs and restrictions allowing Aus business to reach more customers.

2.) competitive advantage
-by lowering cost of exporting goods and services FTA’s help Aus products become more competitive against local and international alternatives.