Principles Of Management and Trade Agreements †Free Samples

Question: Discuss about the Principles Of Management and Trade Agreements. Answer: Free trade agreement is a proven way to open up foreign market through trade agreements. Trade agreements therefore reduce the barrier in export and import of goods. The reduction of the trade barrier and creation of more stable and transparent environment is of great benefit for the economy. A free trade agreement in other words has helped Australian business to grow in an effective manner. These trade agreements are helping in expanding export market for Australia, they reduce the imported input cost, helps Australian in making oversea investments and they attract oversea investors (Free trade agreement. 2017). With lots of barriers to Australian product and services falling abroad, there is an increase in awareness of goods and services. In such a diversified business scenario, the opportunities are growing in the oversea market. In order to prepare businesses to face challenges it is a better idea to update the business plan. Imports of goods and services to Australia under the free trade agreement will create challenges for the local business. The oversea business gain interest in the local business for the purpose of making investments. The trans-Pacific Partnership Agreement negotiations is a trade agreement in between Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, Peru, New Zealand, Singapore, the United States and Vietnam. The negotiations were successfully completed on 6 October 2015. The trans-Pacific Partnership Agreement is a local free trade agreement for increasing an extraordinary capacity and aspiration. These trade agreements have a potential to compel job-creating expansion in the Australian economy. The trans-Pacific Partnership Agreement results comprise of a new market right of entry for Australian exporters of goods and services. These trade agreements have a potential for the investors in addition to the Australias accessible free trade agreements. The TPP helps in creating new job opportunities create new openings and supply an additional expected and translucent authoritarian atmosphere (Fergusson, 2010). The trans-Pacific Partnership Agreement helps in establishing a more faultless trade and investment environment transversely in 12 countries through commonly-agreed rules. These set of rules and guidelines ensures precision of laws and policy. The trans-Pacific Partnership Agreement provides a greater certainty for businesses and reduces costs and red tape. They have ensured a consistent participation in regional supply chains. The trans-Pacific Partnership Agreement permits other members to connect in the future (Dhar, 2015). This will allow business to attain huge benef its in future. Australia is dedicated to expand the trans-Pacific Partnership Agreement membership over time. The trans-Pacific Partnership Agreement deal with modern trade disputes in an effective way. They are following efficient techniques like obligation on state-owned enterprises in order to promote competition, trade and investment. This has also enabled Australian exporters to struggle with the international business organizations (Petri, Plummer and Zhai, 2012). Meanwhile a number of global; health professional, internet freedom activist, environmentalist and various trade unions have criticized and protested against the treaty. It is due to the level of secrecy maintained during the negotiation. The agreements vast scope and controversial clauses drafts were leaked among public. There were mixed reviews from people around the world who called the agreement a fundamentally flawed document. According to Alfred de Zayas the trade agreement was based on an outdated model. According to him the trade agreement were causing binding legal obligations on countries, together with the International Covenant on Civil and Political Rights and the International Covenant on Economic, Social and Cultural Rights. As per Alfred de Zayas trade is obliged to be done underneath the human rights system. Under the trade agreement the investor can sue the government but there government cannot sue the investor. This has created an asymmetry in the overall existenc e of the document. There was lack of accountability and transparency in the document that has created imbalance. The US President Donald Trump has argued that the document is very lengthy and complicated. TPP is much more than a free trade agreement. There have been debates regarding the complexity of the document and various lengthy clauses. It has created difficulty for an individual to understand the relevancy of the document. The length of the document is 5600 pages. It is difficult for an individual to go through every single clause. This has created disparities in understanding the document with the clarity (Muntaner and Mahabir, 2016). There has been criticism regarding the disproportionate pressure on the US trade negotiator. It is seen that there was huge pressure on establishing policies in their favor. The industry representative forms to be a large part to the total membership. An extreme pressure was made by the superior countries was a major reason behind the controversy. It has created a disturbance in the implementation of policies on the ground of reliability (Petri and Plummer, 2016). There were debate regarding the non-compete clause. This was to ensure that the trade secrets are well protected by the government from criminal offence. There were questions on the credibility of the document that may cause problem in delivering effective results to the opponent. The TPP has faced critical reviews from the political and linguistic activist Noam Chomsky who argued that the agreement is designed to carry forward the neoliberal projects to increase the profit domination and to set the working people in competition. This will generate lower wages for the labor worldwide. The trade agreement will cause devastation of working families. There were arguments that the trade agreement will cause a creative destruction. It was argued that few jobs will be lost causing a huge setback for the local workers. The business organizations will go out of business which requires transition assistance for the displaced workers. The arguments regarding the loss of jobs in the local marke t has questioned the document. The world trade agreement does not have labor and environmental standards. The key benefits in term of negotiation are a free access for the sensitive products like sugar and apparel in the US, there will right amount of intellectual property protection in the term of data, privacy etc, commercial standards for the state owned enterprise and the efficient labor practice in Malaysia with respect to anti-China preferences (Why Is The TPP So Controversial? 2017). According to the research a country with a more protected economy is likely to get benefit. So Vietnam and Japan are likely to attain benefit from the treaty. The Vietnamese economy will gain benefit due to external competition. Japan will receive a benefit due to agricultural and service sector. It is more likely that the free market economies will have the smallest gain. Economies like Singapore New Zealand and Australia are likely to gain a little against the other countries the most competitive firms in the industry will gain the benefit from the access of export market (The pros and cons of the Trans-Pacific Partnership pact. 2017) It is highly expected that the treaty will unify the set of rules and regulation for the state owned enterprises, intellectual property rights and labor and environmental standards. The document will act as a model for the future trade agreements. It is seem as a modern document to implement the common standards across the state. This will ensure protection of foreign investment and intellectual property right. The huge difference in the terms of economies structure and competitiveness has created disparities. The countries do need restructuring in terms of economic development. The broads goal of TPP is to create a trade and investment bloc that covers approximately 40 percent of the world economy. The hope is to remove the trade and investment barrier in order to regularize the trade agreement. The removal of trade barriers will entice the countries to form trade relationship. The full implementation of the document requires a considerable amount of time. The trans-Pacific Partners hip Agreement will help in establishing a more faultless trade and investment environment transversely in 12 countries through commonly-agreed rules. It is the first kind of document in the history that has created awareness. Meanwhile the partners are closely analyzing the document in order to understand the relevancy in todays global competitive scenario (Williams, 2013). To conclude the trade agreement is necessary for a country to establish contractual relations in order to attain growth. The trans-Pacific Partnership Agreement has helped in creating a free-trade environment to attain utmost benefits. The main purpose of the document is to generate opportunities in the 12 countries. This will ensure growth and prosperity in a long run. It is critically argued whether the document hold importance in current preview. It is more likely to observe that the more protected economy is likely to get more benefit than the free market economies. Hence it is clear that the document is more beneficial for the different economies. References Dhar, B., 2015. Trans-Pacific Partnership Agreement.Economic Political Weekly,50(24), p.13. Fergusson, I.F., 2010.Trans-Pacific Partnership Agreement. DIANE Publishing. Free trade agreement. 2017. Online. Available at: https://dfat.gov.au/trade/agreements/pages/trade-agreements.aspx Accessed on: 8 May 2017 KRIST, W., Trans-Pacific Partnership Agreement. Muntaner, C. and Mahabir, D.F., 2016. Just Say No to the TPP: A Democratic Setback for American and Asian Public Health; Comment on The Trans-Pacific Partnership: Is It Everything We Feared for Health?.International Journal of Health Policy and Management. Petri, P.A. and Plummer, M.G., 2012. The Trans-Pacific Partnership and Asia-Pacific Integration: Policy Implications. Petri, P.A. and Plummer, M.G., 2016. The economic effects of the Trans-Pacific Partnership: New estimates. Petri, P.A., Plummer, M.G. and Zhai, F., 2012.The Trans-pacific partnership and Asia-pacific integration: A quantitative Assessment(Vol. 98). Peterson Institute. The pros and cons of the Trans-Pacific Partnership pact. 2017. Online. Available at: https://www.dw.com/en/the-pros-and-cons-of-the-trans-pacific-partnership-pact/a-18597149 Accessed on: 8 May 2017 The trans-Pacific Partnership Agreement, 2017. Online. Available at: https://dfat.gov.au/trade/agreements/tpp/Pages/trans-pacific-partnership-agreement-tpp.aspx Accessed on: 8 May 2017 Why Is The TPP So Controversial?2017. Online. Available at: https://www.forbes.com/sites/quora/2016/10/27/why-is-the-tpp-so-controversial/#54e8b4745eb3 Accessed on: 8 May 2017 Williams, B.R., 2013. Trans-Pacific Partnership (TPP) countries: comparative trade and economic analysis.