How can international trade agreements lead to economic growth?

1. by creating jobs in the export industries

2. by opening up new market for domestic goods

3. by facilitating culture exchanges between nations

4. by reducing expenditures on domestic production

The main way an international trade agreement serves to generate economic growth is really illustrated best by answer 2. by opening up new market for domestic goods. For the manufacturing country of origin the expanding of the markets available will strengthen demand for their produce and allow more employment to be generated in the industries involved and subsequently more taxes to be paid to the government for the wider benefit of the state. Additionally more of the people employed will in turn allow other sectors to grow as the local population's newly improved status will allow them to have more purchasing power.