Trade Agreements and Alliances Paper
TRADE AGREEMENTS AND ALLIANCES PAPER 1
TradeAgreements and Alliances Paper
TradeAgreements and Alliances Paper
Globalization and modernization are some of thecurrent changes that we have seen in the current marketing platforms.Globalization entails the international spread of business ideas,services, Goods, technology capital and even dissemination ofparticularly important information. Globalization has many impacts onstakeholders and relevant participative parties. On the other hand,there are some specific aspects, which affect the globalization ofbusiness. This aspect comes in many perspectives, so its impact willdepend on the specific sector. This paper will focus on advantages ofglobalization and then highlight on how trading agreements andalliances affect this process.
Globalization has many benefits in theparticipative countries and across the globe at large[ CITATION Kue17 l 1033 ].Free trade is one of the benefits. It allows countries to producequality goods and services at a reduced cost. The elimination ofmovement restrictions allows for movement of labor to solveunemployment problems in one region while at the same time solving ashortage issue in the other region. Improved economies of scale arelikely to arise from globalization due to production specialization.Increased competition across the globe puts manufacturers underpressure, so they have to produce quality goods and services ataffordable rates. An increased level of investment from all countriesis notable as they take advantage of reduced investment rates andeasier terms of operation.
MarketingPlaces and Trade Agreements
The world-marketing platform mainlyconcentrates in three major marketplaces, which are inclusive of theNorthern part of America (United States, Mexico and Canada), easternpart of Europe (Germany, U.K, France and Italy), and the PacificAsia(China, Malaysia, Thailand, South Korea, Singapore, Hong Kong,Taiwan, Australia, Philippines and Indonesia) . Most of thesemarketing places have formed treaties and trading agreements[ CITATION Ron16 l 1033 ].Some of these agreements are inclusive of the general treatyon tariffs and trade, Northern American free trade agreements, theEuropean Union, and the World Trade Organization. GATT agreementeliminates trading barriers by promoting the protection of domesticindustries. NAFTA eliminates trading tariffs and other existingtrading barriers in the northern America trading platforms. TheEuropean Union reduces many unsanctioned quotas while at the sametime sets the threshold for tariffs within the member countries. WTOpromotes fair trading practices across the globe by encouragingmultilateral negotiations and dispute resolution among membercountries.
Impactsof Agreements and Alliances
These trading agreements have some majorimpacts on the globalization of the business in the United States andacross the globe at large. The agreements have played a crucial rolein elimination or reduction of trading barriers. This, in turn, hasallowed for the growth of business across many fronts. Some of thesetrading agreements have provided a platform for trading blocs’establishment. Tax duties and tariffs have in the past prohibitedfair-trading but are being eliminated by some of these tradingagreements[ CITATION Ron16 l 1033 ].Consider the free trade as an example such an agreement has openedup trading opportunities in many regions. The posterity of most ofthese alliances has informed relevant stakeholders in participativecountries aware of the many disadvantages that canbe derived from the elimination of trading barriers.
Trading agreements and alliances haveinfluenced many aspects apart from the trading barriers. Many tradingrelationships have arisen and even improved because of theseagreements. The alliances have also affected the investment platformsacross the globe. These agreements are responsible for defining andshaping investment relationships across the word. Given the fact thatmost of these agreements eliminate restrictive barriers in movements,the level of interpersonal human interactions and socialization hasincreased. This has led to the spread of ideas and concepts from oneregion to the other. This, in turn, has led to innovations, which aresolving some of the current problems.
To sum up, one can note that globalization andtrading alliance have had some major impacts across the globe. Mostof these impacts are in the positive direction. Trading agreementshave forced further globalization through spreading of ideas.However, it is notable that one should weight the expected outcomesbefore committing to a treaty or any alliance.
Kuepper, J. (2017, February 13). Globalization and Its Impact On Economic Growth. Retrieved April 04, 2017, from The Balance: https://www.thebalance.com/globalization-and-its-impact-on-economic-growth-1978843
Ronald J. Ebert, R. W. (2016). Business Essentials, Global Edition. Upper Saddle River, NJ: Pearson Education Limited.
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