Current Economic Issues- Individual Assignment

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Current Economic Issues
(Individual exercise)
(16 May 2012)

By: To: Contents

Introduction:3
Part 13
Economic partnerships3
How does this agreement increase value and earnings for NZ?5
What are the non-trade?6
Part 27
What is one specific NZ business sector from the proposed agreement?7
What are the advantages or disadvantages to this business?7
Modifications to the proposed agreement to augment possible advantages?8
Conclusion9
References9

Introduction:
This report will show how economic partnership agreements add value through exports and overseas earnings that are good for business, the country, and the people. This report will cover the trade and non-trade effects of such an agreement. One agreement that will be considered is the Trans Pacific Partnership (TPP) agreement that has grown from the base agreement of four countries, namely New Zealand, Chile, Brunei, and Singapore, also known as the P4. The TPP includes another five countries negotiating along with the original P4 countries. Part 1 will discuss how free trade will add value to NZ exports and overseas earnings through regional trade agreements, and economic integration, and why New Zealand (NZ), is known, as a proficient free trade negotiator and excellent economic partner. What are the benefits and where to in the future. Part 2 The TPP has implications for New Zealand businesses, so we will explore implications from the proposed partnership agreement and suggest any recommendations that may augment or mitigate any advantages or disadvantages. Fonterra is a global business that exports 95% of their production to over 100 markets. How does the world leading dairy exporter benefit from negotiating a successful completion to the TPP. In conclusion, the report will show that free trade benefits the welfare of the national, where the benefits and gains are larger than any losses, and the creation of a healthy competition among producers and will cover any recommendations. Part 1

Economic partnerships
The term economic partnership is one of many terms that indicate an arrangement between one or few economies or countries, where these partners agree to align economic and political policies to facilitate growth in trade, in welfare and investment. An economic partnership, can be represented by, free trade agreements, closer economic partnerships, and a strategic economic partnership. Regional trading agreements are primarily, based on location (Ministry of Foreign Affairs 2012,April). The benefits of regional trading blocs or agreements between countries can also allow small economies to experience economies of scale (Ministry of Foreign Affairs 2012,April). Economic integration refers to the varying forms that membership countries are comfortable participating in with others. Economic integration refers to use of a variety of these agreements and are based on increasing trade among members, establishing rules and on which to function and operate and securing a positive relationship in which to foster and grow that is mutually beneficial to all. An economic union encompasses the principles of the common market and customs union. A totally integrated economy implies full integration in policy, politically, and monetary. New Zealand has adopted the use free trade agreements (FTA). Krugman and Obstfeld (2000,June) say FT increases national welfare by avoiding “efficiency losses associated with protectionism” (p.28), encourages innovation for improving process (p.219) and allows more efficiency in production because through increased competition (p.219) Preferential trading agreements offer lower to nil tariffs for member countries and can maintain barriers of duty with ROW compared to free trading agreements that have no...
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