The Gains and Pains of free Trade

Prairie View A&M University EMBA (Group G)

Sidney Jones
Mau'Rissa N Broussard
John Hunter Leever

EECO 5403- Economics in the Global Environment

Spring 2015

Dr. Rahim Quazi, Professor

College of Business
Prairie View A & M University
March 29, 2015

1. Briefly describe the following: Barcelona Agreement and MAFTA:

Barcelona Agreement - A trade pact that involves basic human rights and
standards along with social and political changes.
MAFTA It is an acronym for Mediterranean Arab Free Trade Area, which
involves countries such as Egypt, Morocco, Tunisia, and Jordan, with other
countries coming together for open trade.
2. How will the Euro-Mediterranean FTA benefit the Arab countries economically?
Give examples from two countries.
The Euro-Mediterranean FTA will benefit Arab countries economically through
international trading with land minerals, services, and agriculture goods to one
another. For example, job creation and GDP will have positive trends in Egypt by
making and selling clothes and agriculture goods to the EU. A second example is the
potential for Algeria to grow economic revenue through foreign investment by
broadening their petrochemical market.
3. Are the benefits of the FTA limited only to economic gains? Briefly explain.
There are additional benefits other than economic gains by the FTA. Strengthening
political partnerships between countries is a strategic and important benefit that
can help bridge the gap between cultural differences and help stabilize peace if
needed.
4. What is the nature of the problem the Egyptian auto industry is facing?
Egypt faces a stagnant automobile industry that lacks modernization and the
willingness to become competitive to improve quality. Their governments
resistance to open barriers to trade has a negative impact on products
manufactured in their own country.
5. The resolution to which problem is central to the future of the Euro-Mediterranean
FTA?

To ensure the future of the Euro-Mediterranean FTA, there will need to be a

resolution between the Israeli and Palestinian government.