ABSTRACT
This chapter addresses international aviation agreements, industry alliances, and the fallacies behind anti-trade arguments. Proponents of free trade argue that reductions in trade barriers under the TPP will enable firms and industries to take advantage of free trade to export goods and services. Economists generally agree on most of the key policy issues related to international economics. The chapter explores the reasons why nations choose to engage in international trade as well as the advantages of doing so. Economists generally agree that free trade is the best policy in aviation and most other industries. The chapter discusses the arguments for and against free trade, with a presentation of the theories of absolute and comparative advantage. It concludes with a discussion on free trade agreements.
