5.1 understandable to make the FTA will cause detrimental to the country. Is as follows:1.) according to the principle of Economics To use the free trade policies will cause efficiency and advantages by comparison (Comparative Advantage). Dividing the work place (Division of Labour) and economical (Economy of Scale) size. Make mass production allows is cost. Consumers can choose to consume quality goods prices according to market forces literally from these principles will be beneficial to establish free trade zone made.2.), the free trade zone will provide a broader market. The export will be easier. Very convenient. A single trade. As the parties agree. Eliminating trade barriers negotiation, in addition to any taxes and are more easily negotiated. In addition, there is a lot more source of raw material distribution. Make the raw materials, import prices were down, and lower production costs.3) by-product from the free trade zone is triggered to more foreign investment, and when any one of the countries establish free trade zone. Need to reduce the tax. Means that the industry may have to defend the Government and tried to adapt in order to be able to fight this case, productive, competitive is making several of the free trade zone that has the ability to be more competitive.4) establishing free trade zone in a multilateral manner, such as a group or groups of AFTA in effect that makes the EU group. In addition, there will be a market for trading. Products can fulfill the requirement in itself, also have the power to negotiate and to negotiate more bilateral, international and regional, because if you wait for the WTO hopes the WTO will depend on it as a mechanism to enable the market to free trade would be required for a long time.5.) to make a free trade zone was a internaional town is to be as close to another country, a country with one of the checks. For example, China will make the ASEAN free trade area, with significant political influence will be the role of China is economic. The increase in the ASEAN political and counterbalanced, if the United States wants to power China, conducting FTA with countries in the region. Which is why the political in terms of establishing free trade zone, which will have to be taken into consideration.
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