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Common trade agreements include the World Trade Association, economic communities, bartering, countertrade, and free-trade zones. What are possible concerns regarding trade agreements?

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User OriHero
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1 Answer

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Step-by-step explanation:

1. Unequal terms: Trade agreements could potentially create an unfair balance of power between two entities, allowing one country or party to benefit while the other is left with unfavorable terms.

2. Exploitation: Trade agreements could be manipulated to allow countries or entities to exploit resources or labor in the other countries in exchange for unfair terms.

3. Job Loss: Trade agreements can lead to job losses in countries that are unable to compete globally due to their industry not being competitive enough. This can create economic instability in countries as well as social unrest.

4. Impacts on Local Communities: Trade agreements can lead to adverse impacts on local communities, such as displacement from their traditional lands, decreased access to natural resources, or ecological destruction.

5. Risk of Dumping: Dumping is the practice of exporting products at very low prices to create an unfairly competitive market for other countries, potentially resulting in major losses for countries that cannot compete. This practice is often seen in trade agreements.

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User Ttimasdf
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