International trade( to be specified) - Research Paper Example

Impact of FTAs on International Trade The research proposal provides a comparative analysis about the changes occurring in the international business environment as the result of free trade. The companies must concentrate all their efforts towards displaying effective strategies related to free trade and to figure out the effects that free trade agreements have on international trade. Before conducting the research, the articles related to free trade agreements, trading zones, theories of international businesses and the inferences of free trade on business will be studied.

The research will also take into account the continuously increasing advantages and disadvantages of free trade agreements within a particular industry. The first task will be identifying the articles that can help in addressing the topic of the research. Research QuestionDetermining the impact of FTAs on international trade.Concluding that whether or not FTAs is effective for international business. Data SourceThe data will be collected through primary as well as secondary sources. Primary data will be collected by the help of questionnaires and by conducting interviews from the selected population; whereas the secondary data will be collected from scholarly sources including books and journal articles.

Regression analysis will be used to interpret the data collected through primary sources.Literature ReviewBaier and Bergstrand state in their article that the free trade agreement is considered to be an effective way for introducing the foreign markets to the exporters of any country. Trade agreements are a source of reducing the barriers concerning exports, while protecting the interest of the countries and also enhancing the law in the countries that are FTA partners. The gravity equation also plays a significant role in analyzing the flow of international trade and in particular the effects of FTAs on international trade.

However the facts suggest that the formation of a transparent and stable trading association and the reduction in the barriers associated with trade have the made investment much cheaper for the exporters of FTAs partner countries in case they want to export their products and services to the other trading markets. Statistics suggests that America in the year 2013 enjoyed trade surplus in their manufacturing industry with other FTA partners of approximately $60 billion, which was 30 percent more than the previous year (Baiera & Bergstrand, 2007).

The topic of the research is considered to be significant from the economic point of view. Many nations do support the notion of free trade as they think that the agreement neglects the rights of the importers and focus on the rights and benefits of the exporters. For effectively reaching the conclusion this research will be conducted in two separate parts. Firstly the literature already present on the subject will be studied and then, by the help of that primary data will be collected from the selected sample.

The impact of FTA on international businesses is still a debatable topic for many countries; however, the research will help us to conclude this critical subject by the help of relevant data. ReferenceBaiera, S. L., & Bergstrand, J. H. (2007). Do free trade agreements actually increase members international trade? Journal of International Economics, 72-95.