English essay
Assignment 2
SEMINAR IN GLOBAL BUS POLICY MGT-3341-0-14540-201410
(1) Regional trading blocs, such as the EU and NAFTA, are growing in importance. What are the implications of these trading blocs for international business policies? Are they helpful or harmful to the regions? How may they affect global investments? - Trading blocks such as the North American Free Trade Agreement and the European Union stand to have a great impact on international business because they change the rules of trade and in some cases, investment, presenting new opportunities but also new threats to both foreign and domestic companies. Whether they are harmful or helpful is difficult to state in just a paragraph or two, but will depend on the perspective of the particular company (or individual). For companies inside a trading block, such agreements can be seen as helpful since they can have the effect of keeping non-member companies out, thus providing a degree of protection to member companies. Moreover, member companies are helped by the increase in effective market size that is a result of such an agreement. On the other hand, since trading agreements essentially create one large market, member companies may find that they face increased competition within the block. For companies outside a trading block, particularly those that have had a strong trading relationship with a member country, trade agreements can be devastating. Companies may find that they face high tariff and nontariff barriers that prevent them from exporting to the companies within a trade bloc. This situation may lead firms to invest in a member country and essentially become an insider.
2) Ethnic ties; old colonial alliances, and shared languages appear to affect international trade. Why might this be so? If true, how does this affect international businesses and global business policies, especially which markets to enter?
- They affect international business because they may provide the
SEMINAR IN GLOBAL BUS POLICY MGT-3341-0-14540-201410
(1) Regional trading blocs, such as the EU and NAFTA, are growing in importance. What are the implications of these trading blocs for international business policies? Are they helpful or harmful to the regions? How may they affect global investments? - Trading blocks such as the North American Free Trade Agreement and the European Union stand to have a great impact on international business because they change the rules of trade and in some cases, investment, presenting new opportunities but also new threats to both foreign and domestic companies. Whether they are harmful or helpful is difficult to state in just a paragraph or two, but will depend on the perspective of the particular company (or individual). For companies inside a trading block, such agreements can be seen as helpful since they can have the effect of keeping non-member companies out, thus providing a degree of protection to member companies. Moreover, member companies are helped by the increase in effective market size that is a result of such an agreement. On the other hand, since trading agreements essentially create one large market, member companies may find that they face increased competition within the block. For companies outside a trading block, particularly those that have had a strong trading relationship with a member country, trade agreements can be devastating. Companies may find that they face high tariff and nontariff barriers that prevent them from exporting to the companies within a trade bloc. This situation may lead firms to invest in a member country and essentially become an insider.
2) Ethnic ties; old colonial alliances, and shared languages appear to affect international trade. Why might this be so? If true, how does this affect international businesses and global business policies, especially which markets to enter?
- They affect international business because they may provide the