...Mexico Nowadays, there are several companies from USA that consider Mexico as one of the best places to invest Latin America, not only for being near USA, but also because the Mexican government has made major changes in order to keep the economy stable in the last years. Also, If we add that Mexico offers other advantages such as; the free trade agreements with USA, low labor cost (compared with USA), and the increase in the number of middle class, we might think that Mexico is one of the best countries to install this company. However, we have to consider that the corruption is still an issue, several companies take a long time to initiate activities due to bureaucracy, and the toll roads are expensive. From the economic point of view, we can consider that Mexico has grown steadily in recent years (around 3-4% per year), with a similar growth projection for the following year. Even though, Mexico has a moderately consolidate political party systems, and a low political consensus (this could not allow a successful prospects for economic reforms from Packenham model), it is projected that Mexico continues its economic growth, led by its president Enrique Peña Nieto. We must also consider that Mexico has a low probability of currency devaluation, because it has an autonomous central bank, flexible interest rate, among other factors, allowing considering Mexico as a business platform. Second, the power bargaining acquires relevant importance in the negotiation between this company...
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...MASTER IN BUSINESS ADMINISTRATION INDIVIDUAL ASSIGNMENT SUBJECT: MANAGING IN THE ECONOMY SUBJECT CODE: MGT6233 NAME : GIRISH S/O GOPAL 810602 -01 – 6275 I/C : STUDENT ID : 01130024 LECTURER : MS.SANDRAKALA 2 Executive summary Free trade refers to trade between countries without tariff and non-tariff barriers on exports and imports. In another word, free trade refers to trade without government interference. Classical economists such as Adam Smith and David Ricardo have advocated that free trade improves the economic well being of a country by increasing the production of a country and allowing efficient allocation of resources, thus increasing global production and promoting peaceful and prosperous global environment. In the global basis, World Trade Organization formed after GATT in 1995 promotes trade liberalization through multilateral negotiation. On the other hand, in the regional basis, countries are forming regional economic integration to promote free trade stage by stage. The initial stage is known as Free trade areas (FTAs) under which they agree to remove tariffs and non-tariff limitations on trade in products between themselves. Despite all these initiates, governments around the world are still imposing various restriction on trade between countries to protect its own industries such as agriculture which is considered as the backbone of a country. Therefore, this report will discuss the concept of free trade, trade theories...
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...Introduction This essay will explore the nature of NAFTA and its effect on regional integration as well as state economies from several perspectives. In 1993, the United States, Canada and Mexico signed the North American Free Trade Agreement to achieve the higher level of regional integration. This NAFTA not only concerns the removal of trade barriers, but also aims to promote the movement of capital. Firstly, this essay will explain the evolution of NAFTA and its successful influence on economic integration. Furthermore, this chapter will provide the criticism on the influence of NAFTA. Secondly, this study will discuss the impact of NAFTA on regional integration, particularly economic integration. Then, this essay will propose the understandings on the effect of NAFTA on members’ economies and businesses from four perspectives, including trade, economic growth, employment and FDI. Main body The Evolution of NAFTA The North American Free Trade Agreement (NAFTA) issued in 1993 aims to removal trade barriers and liberalise economics and business among the United States, Canada and Mexico. Compared with similar FTA economic relationship, such as EU, NAFTA is described as the most implemented FTA (Orme, 1996). Like most FTAs, NAFTA not only effectively coordinates resource and improves competitiveness of countries and corporates, but also promotes the movement of products, services and investment, even financial integration. For instance, Krugman & Hanson (1993) stress that...
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...health safeguards set forth in the 2007 New Trade Deal of the Bush administration, increase prices of consumer goods, and restrict access to information on the internet. -There are 12 countries involved in negotiations, with China as an observer and considering entry. Overall, these countries make up about 40% of the world GDP and offer access to huge markets for the U.S. Nonetheless, the threat of losing jobs overseas, as with most FTAs, is cause for concern. -Past FTAs have resulted in an increase in U.S. trade deficit and a loss of jobs. However, analysis shows that American firms can benefit from these agreements as well with increased exports to new markets. Brief History The Trans-Pacific Strategic Economic Partnership Agreement is a free trade agreement with the goal of liberalizing the borders and economies of the Asia-Pacific Region and was initiated in 2005 by Chile, New Zealand, Singapore, and later Brunei. Eight more countries have joined in the negotiations since 2008: the United States, Australia, Vietnam, Peru, Malaysia, Mexico, Japan, and Canada. China has also expressed interest in joining the agreement, but is not as of yet directly involved in negotiations. So far,...
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...Conclusion………………………………………………………………………………...9 2.3 Arab Free Trade Area: Potentialities and Effects and the Impact of regional Trade Agreement and Trade Facilitation in the Middle East North Africa region…………………….10 2.3.1 Introduction………………………………………………………………………………..10 2.3.2 The Past……………………………………………………………………………………11 2.3.3 Conclusion…………………………………………………………………………………13 2.4 The North American Free Trade Agreement:Economic impacts of the agreement on United States of America and Mexico in comparison…………………………………………………14 2.4.1Introduction………………………………………………………………………………..14 2.4.2 About NAFTA……………………………………………………………………………15 2.4.3 Conclusion ……………………………………………………………………………….16 2.5 Effects of changes to USA-Korea Free Trade Agreements[FTA] On The Passenger Vehicle sector……………………………………………………………………………………………17 2.5.1 Introduction………………………………………………………………………………17 2.5.2 Changes to FTA to new[accompanying agreement]…………………………………18 2.5.3 Effects of changes on both imports and exports……………………………………..20 2.6 Singapore’s Free Trade Agreements{FTAs} with New Zealand……………………...23 2.6.1 Introduction…………………………………………………………………………..23 2.6.2 Singapore- New Zealand...
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...FINAL REPORT Impact of Trade and Economic Policy Reforms on Key Sectors of the Egyptian Economy PREPARED BY ATR Project SUBMITTED TO USAID/Cairo Ministry of Foreign Trade SUBMITTED BY Nathan Associates UNDER CONTRACT NO. PCE-I-00-98-00016-00 Task Order 827 2 April 2004 Contents Executive Summary Egypt’s Economy in Relation to the Global Marketplace Trade Policy and the International Trade Regime Impact of Trade Regime Changes on Subsectors Conclusions Next Steps 1. Introduction 2. Egypt’s Economy and Its Place in the Global Arena Egyptian Economy Today Structure of the Economy Labor force, Employment and Unemployment Macroeconomy and Balance of Payments Trade Patterns Macroeconomic and Trade Policy Reform Current Challenges Distinguishing Characteristics of Egypt’s Economy Water Resources and Growing Population Pressure Oil and Natural Gas Geographical Location Egyptian Culture Higher Education Socialism and Its Aftermath Egypt’s Comparative Advantage in the Global Economy Changing Global Economy Egypt’s Economy in Relation to Three Waves of Globalization Revealed Competitive Advantage Analysis v vi viii xi xiv xvi 1 5 5 5 7 8 10 12 13 14 14 16 16 16 17 18 19 19 22 25 II 3. Trade Policy and the International Trade Regime Current Trade Regime in Egypt Tariff Structure Non-tariff Barriers to Trade Multilateral, Regional, and Bilateral Agreements Multilateral Agreements Regional Agreements Bilateral Agreements Trade Regimes of Major Trading...
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...1. Peru nominal and real GDP, 1994-2013 and Inflation Rate, 1994-2013 22 Figure 2. Peru Exports (FOB) and Imports (CIF). 1994-2013 22 Figure 3. Peru Trade Openness Index and Contribution of US trade to TOI. 23 Table 1. Trade evolution for Exports, Imports, and Trade Balance, Peru-USA 2009-2013. 23 Figure 4. Trade evolution for Exports, Imports, and Trade Balance, Peru-USA 2009-2013. 24 Figure 5. Peru-USA Trade Exports and Imports per capita. 2009-2013. 24 Figure 6. Peru-USA and Peru-World Net Trade and Balance Trade Comparison. 2009-2013. 25 Figure 7. Peru’s Foreign Direct Investment stock and flow (Equity Capital). 2003-2013. 25 ABSTRACT Peru has signed a Free Trade Agreement with United States on February 2009, this FTA with the US is a balanced and comprehensive agreement covering all aspects of bilateral economic relationship such as: trade in goods, investment promotion, procurement, border services, and protection of intellectual property. It also includes chapters on labor and environmental protection. Objectives for the Agreement are of two orders, to increase and guarantee preferential access to Peruvian exports to US economy, diversify exports, and attract Foreign Direct Investment, and on the other hand (and maybe most important in the long term) to strengthen the stability of the Peruvian economic policy reforms and institutions, as well as to contribute to improved international risk classification of Peru, promoting in...
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...ABC The Pacific Alliance 1 The Pacific Alliance – Deep integration for prosperity The Pacific Alliance is a mechanism for regional integration formed by Chile, Colombia, Mexico and Peru, in April 2011. It acquired legal and formal existence on 6 June 2012, with the signature of the Framework Agreement. The process seeks to create attractive markets among its member countries and enhance their competitiveness in the wider world. 2 Member Countries T h e Pa c i f i c A l l i a n c e Mexico Colombia Peru Chile 3 Finland United Kingdom Netherlands Germany France Switzerland Italy Canada Turkey People's Republic of China Japan Republic of Korea United States of America Honduras Guatemala El Salvador Dominican Republic Costa Rica Panama Spain Portugal Morocco Israel India Singapore Ecuador Australia Paraguay Uruguay New Zealand Member-Candidate countries The Pacific Alliance Observer Countries T h e Pa c i f i c A l l i a n c e Costa Rica Panama 4 Objectives of the Pacific Alliance: To build, through participation and consensus, an area of deep integration that will move progressively forward towards the free circulation of goods, services, capital and persons. To dynamize growth, development and competitiveness in the economies of the Parties, in order to achieve greater welfare, overcome socioeconomic disparities and secure social inclusion in their societies. To become a platform for political articulation, economic and commercial integration, and projection...
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...North C arolin a Polic y Wa t c h Cru cial Co nv ersa tion The Trans-Pa cific Partnership: Worse than NAFTA? Septemb er 2013 Lori Walla ch Public Citizen’s Global Trade Watch Outcomes of 20 Ye ars of NAFTA, WTO, FTAs… Crushing of Americ an Middle Class: more than 5 million US manufa cturing jobs (1 out of 4) & 60,000 US manufa cturing fa cilities gone. Millions of service sector jobs offshored: c all centers, computer, programming, engineering, a cc ounting. Wage “arbitrage” in a ra ce- to-the- bottom. U.S. re al median wages at ‘70s levels. Income inequality at Robb er-Baron-era levels. When manufa cturing, good jobs go tax bases shrink – and schools, public services, infrastructure cut, and construction sector unemployment soars. Floods of unsafe imported food, products. Financial deregulation, instability and repe ated financial crises. He alth, labor, land use, other public interest laws around world atta cked in foreign tribunals. Some dump ed. Initiatives chilled. Billions extra cted from taxpayers and paid to corporations for violations of new “rights.” Drug prices up. In poor nations, de adly cut in a cce ss to meds. Rich nation higher prices slam poor consumers, govt budg ets as Big PhRMA profits soar. U.S. loses 170,000 family farms. In ‘12, volume of U.S. food exports only 1% higher than ’95 (when NAFTA-WTO started). Imports of food now 97% above ‘95 level. Livelihoods of tens of millions of pe asant farmers destroyed, mass migrations...
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...of the ESA region's sovereign debt problems and the fragility of their financial systems. : In addition , US economic growth was moderate , while the productive activity of various Emerging economies slowed , BECAUSE of both the slowdown in the industrialized countries and the slowdown in their internal demands. Mexico has a 2.2 percent average tariff rate. It has reduced tariff and non-tariff barriers unilaterally and through trade agreements like the Pacific Alliance. A law passed in December 2013 will partially open the energy sector to foreign investment. The financial sector is relatively small and lacks dynamism. Mexico needs to build a deeper and more accessible banking system. The OECD bemoaned Mexico’s record: it is alone among big emerging markets in suffering from sustained declines in the broadest measure of productivity during the past decade. In order for GDP growth to rise from its current potential of about 3% to a healthier 4%, the productivity trend must be reversed through structural reforms, it said. Mexico’s three main political parties, which have created a pact to promote more than 100 such changes, are aiming for 5%. How much is our country´s external debt? In which way does affect us and our economy? Our external debt is nearly of 443,012,459,000 At more than $14 trillion, America's debt might seem abstract, a number so large it's difficult to conceptualize. But if left unchecked, that swiftly swelling figure has the potential to affect our daily...
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...company, Narcissus Denim Co, is looking to either move or expand it's manufacturing to the Mexico. The jeans are “made in the USA”, but currently the raw material, and the majority of the jeans are currently fabricated in the United States. They employ 75 people. The company was started five years ago in Nashville, TN, and has seen steady growth in the United States. Narcissus Denim currently fabricates its denim jeans in the USA, with only some of the materials coming from China. The cost of raw materials and manufacturing domestically have become too expensive, so Narcissus needs look outside of the USA. Narcissus is aware of other creators of designer apparel that have gotten bad press for using the “Made in the USA” label because the brands only make a portion each piece of their apparel in the USA. The purpose of this memorandum is to examine the possibility of bringing to the USA neighbor by working with “Maquiladora”, the Spanish word for manufacturer, in Mexico. Aspects of US law, international legal implications, as well as the ethical implications of moving this portion of the company to Mexico are the primary focus areas of research. Domestic Legal and Ethical Implications: Narcissus Denim was founded and gained success because of the quality of the product, in great part because the apparel is “made in the USA”. In order to create a portion of the product in Mexico and keep the “made in the USA” label, Narcissus Denim must ensure at least a portion of jeans...
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...and furs for trade. This basically established the link between Canada and Europe, and was the initial face of free trade. The connection of Canada and America trade established quite late, but USA became the most significant partner of trade with Canada. After WWII, the face of trading changed for entire world. Canada established strong connections with Japan, and with Pacific Rim Connection the Japanese industrialisation started, international trade with many countries of pacific region. In 1993, Canada signed NAFTA (North American Free Trade Agreement), with America and Mexico to remove trading hurdles. This agreement was basically devised by Americans, who already had a strong business tie with Mexico, but this also benefited Canada in a great manner. Mexico has a very diverse and big consumer demand, which benefits Canada a lot. Canadian businesses also benefit from the low cost of labour in Mexico. This agreement opened new gates for the Canadian market to south and Central America. With the success of NAFTA, many other nations were interested in having business ventures with Canada....
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...Assessing the Production System at Toyota David Osborn Ebenezer Ogoke Lamar Pryor Loretta Inoni UMUC AMBA 640 9042- Dr. Wende Huehn-Brown Table of Contents Exercise #1: 3 Exercise #2: 9 Exercise #3 14 Exercise #4 20 References 24 Exercise #1: Executive Summary Since the early 1950’s Toyota has been in the business of manufacturing automobiles as a family operated company. Much of Toyota’s success has come from their ability to adapt to an ever changing market place, in both good times and in bad, while honoring its commitment to product safety and quality. This commitment has allowed them to consistently produce cars that meet or exceed that of their competition, while taking into consideration the impact on our environment. Through the years many types of cars can be associated with the Toyota brand, but it is the introduction of the Lexus line of cars in 1989 that has helped to keep Toyota at the forefront of innovation and design. Early in 2000 Toyota took on the daunting task of deciding where to manufacture the Lexus RX300. Through careful analysis it was decided that the Toyota Motor Manufacturing of Canada (TMMC) would get this task. How this decision was derived came from the efforts of an independent consulting firm called the Hawks. They utilized production analysis and concepts derived and refined out of Toyota’s Production System (TPS) from Andon to Yokoten, as well as, Grid Analysis and Decision tree to assess how best Toyota should expand...
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...Public Disclosure Authorized WPS5314 Policy Research Working Paper 5314 Public Disclosure Authorized Regional Trade Agreements Caroline Freund Emanuel Ornelas Public Disclosure Authorized Public Disclosure Authorized The World Bank Development Research Group Trade and Integration Team May 2010 Policy Research Working Paper 5314 Abstract This paper reviews the theoretical and empirical literature on regionalism. The formation of regional trade agreements has been, by far, the most popular form of reciprocal trade liberalization in the past 15 years. The discriminatory character of these agreements has raised three main concerns: that trade diversion would be rampant, because special interest groups would induce governments to form the most distortionary agreements; that broader external trade liberalization would stall or reverse; and that multilateralism could be undermined. Theoretically, all of these concerns are legitimate, although there are also several theoretical arguments that oppose them. Empirically, neither widespread trade diversion nor stalled external liberalization has materialized, while the undermining of multilateralism has not been properly tested. There are also several aspects of regionalism that have received too little attention from researchers, but which are central to understanding its causes and consequences. This paper—a product of the Trade and Integration Team, Development Research Group—is part of a larger effort in...
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...Doing business in Singapore Table 1. Profile of Singapore Name Singapore Geographic location East Asia Current form of state City state with parliamentary democracy Previous form of state British colony (1819±1959) Member of Malaysia (1959±1965) Land area 647.5 sq. km Population 3.04 million (mid-1996 estimate) Population growth (1993±1997) 2% per year Population make-up Chinese (77.3%) (Singapore, as of June 1996) Malay (14.1%) Languages English, Chinese, Malay and Tamil GDP (US$) $94.1 billion (1996) GDP per head (US$) $30 900 (1996) GDP growth (1988±1997) 2.67 times Economic status Newly industrialized economy Type of industrialization Export-oriented Major industries by % of GDP Finance...
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