dicuss the effects of one multilateral free trade agreement on the australian economy (6marks)

Australia agrees to new trade deal:Australia, along with 14 other Indo-Pacific nations, agreed to the Regional Comprehensive Economic Partnership (RCEP) in November. The RCEP is a new Free Trade Agreement, potentially the largest of its type in the world. In total, 15 countries have signed the agreement, including China, Japan and South Korea. However, both India and the United States are not included in the initial agreement. RCEP participants make up nearly 30% of the world’s population and GDP, and represent 66% of Australia’s exports. RCEP is an example of a “multilateral” trade agreement i.e. an agreement that involves multiple nations. Source: Plain English Economics.Question: Free trade agreements like the RCEP are an indication that the world is becoming:(2 Points)UnilateralLess integratedGlobalisedProtectionist

Consider trade relations between Australia and New Zealand. Assume that the leaders of the two countries believe the pay-offs to alternative trade policies are as follows: Australia Low tariffs, New Zealand​​ Low tariffs = Australia gains $10 billion, New Zealand gains $10 billion​​ Australia High tariffs, New Zealand​​ Low tariffs = Australia gains $20 billion, New Zealand gains $2 billion Australia Low tariffs, New Zealand​​ High tariffs = Australia gains $2 billion​​, New Zealand gains $20 billion Australia High tariffs, New Zealand​​ High tariffs = Australia gains $4 billion​​, New Zealand gains $4 billion a) What is the dominant strategy for Australia? For New Zealand? Explain. b) Define Nash equilibrium. What is the Nash equilibrium for trade policy? c) Under the Closer Economic Relations agreement, Australia and New Zealand both agreed to allow free trade in goods and services between the two countries. Do the perceived pay-offs as shown here justify this move to a bilateral free trade policy? d) Based on your understanding of the gains from trade (discussed in Chapters 3 and 9), do you think that these pay-offs actually reflect a nation's welfare under the four possible outcomes?

A free trade agreement or treaty is a multinational agreement according to international law to form a free-trade area between the cooperating statesFree Trade AgreementsGross Domestic ProductInternational Division of LaborHuman Development Index

A Free Trade Area is:Question 40Select one:a.When a group of nations abolishes trade restrictions among themselves and imposes common and uniform tariffs on other nations.b.When a group of nations provides for the free mobility of factors of production among the member nations.c.When a group of nations adopts trade restrictions among themselves without also imposing common tariffs on other nations.d.When a group of nations abolishes trade restrictions among themselves without also imposing common tariffs on other nations.e.When a group of nations abolishes trade restrictions among themselves but also imposes common tariffs on other nations.

Free-trade zones such as the recently signed United States-Mexico-Canada Agreement are established to increase the ease and volume of international trade by aeliminating tariffs on goods that cross borders between member states bopening borders to migrant guest workers from member states cestablishing a common monetary unit among member states dincreasing diplomatic relations between member states eoffering large economic-development loans to poorer member states