'The effect of a MEFTA on the US and Saudi Arabia'

Name

University

Course

Tutor

Date

EFFECT OF MEFTA ON UNITED STATES AND SAUDI ARABIA

Introduction

For over the past six decades following the conclusion of the Second World War , the world has been experiencing rapid globalisation characterised by increased economic integration via formation of various treaties and agreements that have helped in increasing trade in the international markets . Emergence of free trade agreements between different countries which have even incorporated the traditionally communist countries has been the major cause of the increasing globalisation and economic integration

around the world today . Middle East countries which traditionally were not actively involved in international trade are also awakening to the global growth and are entering to various treaties and agreements to enable them increase and improve their global presence in the international markets . Trade agreements are meant to improve trade among countries via a reduction in trade tariffs and other barriers which in turn encourages importation and exportation of goods and services as well as foreign direct investment . Although most trade agreements between countries are meant for trade liberalisation and improvement of the countries ' economies some of the initiatives are politically engineered rather than for economic reasons such as the United States and Israel treaties

Free trade agreements and word trade organisation

Following the conclusion of the Second World War , the world economic growth alongside the world trade have been increasing with an average of between 5 and 8 per annum respectively . This is attributed to overall decline in trade tariffs which today...