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Global Business

In: Business and Management

Submitted By LOCKY21
Words 1159
Pages 5
Stacy Schuster
Global Business
Assignment 2

Recently the U.S. and South Korea came to have reached agreement on a landmark trade deal. According to an article by Martha Grevatt the “landmark deal” makes modification to a previous trade agreement, KORUS, negotiated by George W. Bush and former South Korean President Roh-Moo Hyun. The preceding points in this paper will explore the differentiating views of two articles on the trade agreement, which disagree on whether the agreement is beneficial or not.
A.
The long awaited revision of a free trade agreement met by the U.S. and South Korea is one of the largest trade pacts “by value of traded goods” the U.S. has completed since the North American Free Trade Agreement with Canada and Mexico. According to Evan Ramstad the trade agreement with have many effects on South Korea than the U.S. as they become will continue to play a greater role in the South Korea economy and import tariffs that have been kept high to protect its climb from poverty will be rapidly eliminated. According to the text, tariffs are a tax levied on imports (or exports) (Hill, 2010). This elimination of tariffs may reduce South Korea’s surplus in trade with the U.S., but this pact is expected to contribute to an increase in trade and U.S. firms can immediately set up shop in South Korea to work on international contracts and disputes (Ramstad, 2012). The free trade area between the U.S. and South Korea aims to drop all tariffs and increase the United States exporting of goods and services. As U.S. law firms gain the right to practice in South Korea a political union may be gained and this may attempt to achieve closer integration (Hill, 2010).
B.
With trade agreement comes much discretion as to whether the agreement is beneficial to only one or both countries. According to the text most trade agreements are more beneficial to one

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