consider the effect of the creation or the elimination of trade agreements on a
ID: 2601933 • Letter: C
Question
consider the effect of the creation or the elimination of trade agreements on a regional and/or global level. How would changes in existing agreements impact domestic companies and their decision of whether or not to expand their trade and marketing investments to other companies in North America, Europe, Asia, and beyond? How would country-specific agreements provide an advantage or disadvantage to investments for U.S. companies? Using NAFTA as an example, along with other current agreements in existence or in development, examine the effects of the United States’ attempts to increase and/or decrease the entries to international trade and investment. Evaluate both the pros and cons of this situation.
Answer each question for this Critical Thinking Assignment option.
maintain a formal tone and to cite at least two sources to support your analysis. (Note: You may not use the course textbook to fulfill this requirement.)
Your analysis should be two to three pages in length, not counting the required title and reference pages,
Explanation / Answer
Country-specific agreements providing an advantage or disadvantage to investments for U.S. companies:
1. NAFTA i.e. North Ameriacan Free trade Agreement between the United States, Canada and Mexico eliminates all tariffs between the three countries. This provides advantage of level playing field game with neighboiring countries. However President Trump decided to re negotiate terms of NAFTA on Jan 23, 2017.
2. The Trans-Pacific Partnership was negotiated between the United States and 11 other countries. All of the countries border the Pacific. They were Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore and Vietnam. Because of uneven contribution and in appropriate investment of US companies in these countries, unequal in terms of what US was getting in return, President Trump withdrew from the agreement on Jan 2017. This decision led to more home grown investment by US companies instead of outsourcing or making capital expenditures outside.
3. The Transatlantic Trade and Investment Partnership links the United States and the EU. This agrerement provides advantage to US because many EU based companies can invest in USA now.
The United States has many other regional trade agreements and bilateral trade agreements with specific countries. It also participated in the most important multilateral trade agreement, the General Agreement on Tariffs and Trade. Although the GATT is technically defunct, its provisions live on in the World Trade Organization.
Pros of the United States’ attempts to increase and/or decrease the entries to international trade and investment by elimating NAFTA and other similar agreements.
Cons
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