Question

PLEASE HURRY!Which best explains why international trade agreements are beneficial for developing economies?

Answer 1

if you are referring to trade agreements that fall in favor of a particular country or not. Then the financial benefits can be huge to a country in the developmental stages. A small country could get contracts to supply the United States when in reality it never could have happened.

Ther are six advantages to making trade deals similar to NAFTA, First there is Increased economic growth in the country. Second there is a robust dynamic business climate created in the country. Third there is lower government spending. Many governments subsidize local industry segments. Such as farming, lumber, building and mining. Forth the country receives foreign direct investment, Investors will flock to the country. This adds capital to expand local industries and boost domestic businesses. It also brings in U.S. dollars to many formerly isolated countries. Fifth, Global companies have more expertise and technology than domestic companies to develop local resources. Sixth There will be a technology transfer. Local companies also receive access to the latest technologies from their multinational partners. There is a tremendous boost from all this. Small countries can expand their buisness's which increase the tax base wihich gives goverment more money for education, police, Fire and emergency programs.