Foreign lobbying influences global free trade agreements, shaping future economic landscapes.
The article explores why countries sign free trade agreements (FTAs) and what factors influence their decisions. Using a model based on the idea of protecting industries, the researchers found that countries will only agree to an FTA if it benefits both their economies and if they have previously signed FTAs with other countries. The size of a country's market and its distance from its trading partner also play a role in FTA decisions. Overall, while FTAs start regionally, they can eventually lead to global free trade.