Advantages and Disadvantages of Entering Free Trade Agreements

Authors

DOI:

https://doi.org/10.32719/25506641.2023.14.7

Keywords:

international trade, commercial policies, economic integration, free trade, international agreements

Abstract

The motive behind this study was to examine the various contradictions in the scientific community regarding earnings or losses caused by entering Free Trade Agreements (FTAs). As no similar studies on this topic have been made in recent years, this study was
highly necessary. The main objective of the study was to analyze the theory presented by the authors regarding the advantages and disadvantages in entering a FTA. A literature review helped narrow down 44 scientific sources from years 2016 to 2021 in Scopus,
Scielo, Sage and Redalyc. The results revealed that industrialized countries are the ones which generally received greater advantages in regard to free trade while non-industrialized countries had considerable disadvantages at the time of entering a FTA. It was found that FTAs may bring both benefits and losses depending on the context of a country; it is very important to learn to use this tool properly.

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Author Biographies

Santiago Jaramillo, Universidad del Azuay (Cuenca, Ecuador)

Economista, Universidad del Azuay. ‹santiagoj@es.uazuay.edu.ec›.

Luis Tonon, Universidad del Azuay (Cuenca, Ecuador)

Economista, Universidad del Azuay; magíster en Administración de Empresas, Universidad del Azuay; doctorante en Administración y Dirección de Empresas, Universidad Pablo de Olavide. Profesor/investigador a tiempo completo y coordinador de la Escuela de Economía de la Universidad del Azuay. ‹ltonon@uazuay.edu.ec›

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Published

2023-07-03

How to Cite

Jaramillo, S., & Tonon, L. (2023). Advantages and Disadvantages of Entering Free Trade Agreements. Estudios De La Gestión: Revista Internacional De Administración, (14), 155–177. https://doi.org/10.32719/25506641.2023.14.7
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