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How the Tpp Impact the the Global Economy


Submitted By dinhxuanloc94
Words 1659
Pages 7
International School of Business – University of Economics Ho Chi Minh

Essay Topic – September 2015
The United Stated, Vietnam, and ten other countries are working together to reach an agreement called the Trans-Pacific Partnership. Once completed, the TPP will boost the economies, lower barriers to trade and investment, increase exports, and create more jobs for the countries involved.
To what extent do you agree with the above statement? Refer to specific examples in your answer.

The global economy in the twenty first century has changed rapidly with the trend of trade liberalization. The appearance of some high valuable bi- and multilateral agreements might affect strongly trading activities in the future, especially the Trans-Pacific Partnership (TPP) agreement. This free trade agreement (FTA) is one of the most challenging and largest pacts not only for TPP members, but also for the international exchange. Therefore, the purpose of this paper is to ascertain the direct and indirect effect of the TPP agreement to the worldwide trading. In fact, if the TPP is signed by twelve members, it will boost the development of the global economy significantly, as well as might change the exchange policy around the world. The TPP is a comprehensive agreement, so its provisions cover various sectors of national economy, however, with the limitation of time and specialized knowledge, this paper only assess the outcome of the TPP on export of agricultural products, employment, and investment.

To begin with, the provisions of the TPP will have tremendous impact on national export, especially agricultural field. With the participation of three economic blocs; the Americas, Europe, and Asia, the TPP will cover nearly 40 percent of world trade (White House 2015). Consequently, the TPP opens up one of the largest food

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