The paper "The Pros and Cons of Free Trade Agreements" is a great example of marketing coursework. Free trade agreements have encountered increasing controversy following the concerns raised by organizations, their employees, and other stakeholders. From the global trend, it is evident that free trade agreements will be a precondition for successful economic recovery (Baier and Jeffrey 2). Increasing market access has turned out to be one of the pros of free trade agreements on the part of employment relations stakeholders such as employees of organizations, the managers of the organizations, and employee representatives.
Increased market access implies the access to a large pool of customers therefore increased demand for products. However, the aggressive market entry policy caused by free trade agreements poses a significant challenge to the stakeholders since organizations have to lower their prices or adopt other competitive strategies in order to retain their market share. The essay discusses the pros and cons of free trade agreements in order to explain whether such agreements are beneficial to employees, managers, and their representatives. The Pros of Free Trade Agreements As mentioned before, increased access to markets suffices to be one of the benefits of free trade agreements.
Members of the agreement are able to access the markets of other members thereby exploiting on the market inefficiencies existing in such markets to their advantage. Free trade agreements yield economic growth, higher living standards, increased productivity, increased innovation, infrastructure development, promotion of peace, and stronger institutions (Drozdz and Algirdas 41). Each of the mentioned merits contributes positively towards the wellbeing of employees, managers, and their representatives. For instance, increased access to other markets creates additional market opportunities.
Firms can exploit such opportunities to their advantage by maximizing on the sales and competing favorably. The result would be an increase in their products that would, in turn, increase their sales revenue and wages of their employees. An increase in the wages and salaries of employees implies a consequent increase in the sum that employees remit to their representatives such as unions. This would result in a chain effect that would improve the living standards of employees. Almost similar to opening market access, it is also evident that free trade agreements create trade (Drozdz and Algirdas 41).
Such agreements are substantial in the creation of trade that could not have existed in its absence. Such agreements would ensure that only efficient manufacturers of products supply their products in the free market. Consumption would also switch from high-cost manufacturers of products to low-cost manufacturers. The effect of trade creation on managers, employees, and their representatives is two-fold. Assuming that the organization in question is a low-cost producer or offers low-cost services to its customers, it is evident that the organization and its employees and managers would consider free trade agreements to be significant in its continued growth.
Free trade would imply an increase in the demand for its products. The increase in the demand for products in the market and the successful maintenance of its share in the local market imply that the organization would benefit from the free trade agreement. The benefit emanates from the fact that the free trade agreement is a catalyst for economic growth.