Economic

Environment
and
Arguments of
free trade

Submitted by:

Group 7
Sameer Arora
Akhil Raj
Class – BBA - III Shreya Garg
Section - A Sidhant Nayyar
 Economic Environment
Business Rules
and Regulations Economic
Exchange Rate
System

Market Size Contributing Country’s

Economic
Factors Development

Competition Government
Income Level of Intervention
Population
Free Trade?
• A policy to eliminate discrimination against imports and
exports.

• It does so by removing restrictions on imports and exports

between countries (bans, quotas and taxes among other
measures).

• Buyers and sellers from different economies may

voluntarily trade without a government applying tariffs,
quotas, subsidies or prohibitions on goods and services.

• Free trade is the opposite of trade protectionism or

economic isolationism.
 India-Bhutan Trade Agreement
• Signed in 2006 for a period of 10
years

• New bilateral agreement in 2016

• India transformed from a net-

importer to a net-exporter of trade.

• Indian trade deficit of USD 52.48

million in 2006, to a trade surplus
of 246.88 million in 2016

• Exports to Bhutan expanded from

USD 63.8 million in 2006 to USD
374.21 million in 2016

• On the other hand, India’s imports

from Bhutan expanded from USD
116.29 million to USD 127.33
million during the same period
 India-Japan Trade Agreement
• The India-Japan Comprehensive
Economic Partnership Agreement
(CEPA) came into effect on 1st
August 2011

• Most comprehensive free trade

agreement that India has entered
with any country.

• Agreed measures on liberalization

of trade in goods, services and
investment.

• Trade between India and Japan

reduced from USD 16.81 billion in
2011 to USD 13.64 billion in 2016.

• India’s exports to Japan fell to USD

3.83 billion in 2016
Good or Bad?
Arguments in favour of Free Trade

Stimulates economic growth Helps consumers

Reduces
Increases foreign
Government
investment
spending

Encourages
technology transfer
Arguments against Free Trade

Job Losses Predatory Pricing

Prevent
Increased
Development of
Vulnerability
Industries

Tax Troubles
Conclusion.
Thank You!