IntroductionIn an increasingly globalized world, where international trade continues to grow, the creation of free trade zones and the facilitation of trade are increasingly at the center debates. It is generally agreed that trade is beneficial to the extent that it allows countries to use their comparative advantage on specific products, leading to lower prices and greater choice for consumers; however, trade is often hampered by trade barriers such as tariffs and waiting times, among others (OECD, 2005). The creation of an FTA offers a solution to these problems. Depending on the economic and political situation of the countries signing the agreement, a different free trade zone model could be chosen; for example, free trade zones in which tariff barriers are abolished for member countries but no single policy on customs tariffs with external countries or customs unions including a common policy on customs tariffs with non-member countries. The most advanced trading bloc currently is the European Union, with a single market and currency and freedom of movement of people, goods, resources and capital (European Union 2013). But what is the impact of FTAs ​​on member countries and the rest of the world? Free trade zones: direct short-term effects In the short term, the conclusion of an FTA has an impact on national and global markets in two ways; the first is the creation of trade and leads to stimulating trade in member countries which can now sell their products free of customs duties to other member countries. The second is trade diversion and involves the shifting of consumption from a lower-cost producer to a higher-cost producer within the FTA. Figure 4 Trade creation and diversion As illustrated in Figure 4, when establishing a trade agreement with a partner country, bot. .... middle of article ......ng number of countries.ReferencesAnderson, J., Yotov, YV (2011) Good news on free trade agreements. Vox (http://www.voxeu.org)European Union (2013) The European Union explained: Internal market. Luxembourg: Publications Office of the European Union FATF/OECD (2010) Money laundering vulnerabilities of free zones. FATF Report, March 2010Newron, P. (2006) Proton announces first quarter net loss more than quadrupled due to falling sales. Global Insight Analysis Daily OECD (2005) The Costs and Benefits of Trade Facilitation, Policy Note from the Public Affairs Division, Public Affairs and Communications Directorate. Sloman, J., Hinde, K. and Garratt D. (2013) Economics for Business, 6th ed., Prentice Hall / PearsonOMC (2007) World Trade Report 2007 on international business cooperation. Sixty years of the multilateral trading system: achievements and challenges