International Management Trade and Investment

Question: Discuss about the International Management for Trade and Investment. Answer: Introduction: The trade agreement between Mexico, Canada and United States is known as NAFTA (North American Free Trade Agreement). It is considered as one of the worst trade deal of United States. This deal has advantages to the American companies who have many lower wageworkers in many foreign countries. On the other hand, the American workers who have lost their employment and are earning lower salary usually decry the agreement. These labour unions are protested against the agreement, as they are not getting any benefits from this trade agreement. It is the reason that business trend is now changing day by day (Lahrech Sylwester, 2013). Apart from that, Trump and Clinton are also not supporting the North American Free Trade Agreement. The cause of the rejection is that it does not meet their business demands and expectation. Various studies have portrayed that the trade deficit between these two countries has ballooned approximately tenfold from $17bn to $175bn between the years 1993 to 2013. 851,700 Americans jobs had been displaced as the enterprises were shifting their manufacturing facilities outside the country in pursuit of the cheap workers (Macleod, 2015). On the other hand, Transatlantic Trade and Investment Partnership is a deal between the European Union and United States. Both the continents are developed in terms of economy and trading purpose. Most of the American companies have their branches of operations in the European continent whereas the vice versa is also true. Free trade agreement between these two countries is always a positive sum game that reduces unemployment with an effect of a package that is free of cost. The agreement boost up the economic growth of the countries and also the GDP by 0.5% per annum (Akhtar Jones, 2013). It is responsible for production of $200bn additional amount of economic activity in a year. For instance, both the sectors of industry such as automobile industry and pharmaceutical industry are found to get immense benefits if they clear the regulatory requirements from both the sides. It is seen that the import taxes and tariffs of both the countries. Overall the Transatlantic Trade and Investm ent Partnership (TTIP) is a boon to the countries, as both of the countries have faced and struggled with lower economic growth, unemployment and many government deficits. Hence, this free trade deal will fulfil the deficits from both the sides. It is the reason of not creating any opposition to the TTIP by the labour unions of United States (Jarman, 2014). References Akhtar, S. I., Jones, V. C. (2013). Proposed transatlantic trade and investment partnership (TTIP): In brief.Current Politics and Economics of Europe,24(1), 107-122. Jarman, H. (2014). Public health and the Transatlantic trade and investment partnership.The European Journal of Public Health,24(2), 181-181. Lahrech, A., Sylwester, K. (2013). The impact of NAFTA on North American stock market linkages.The North American Journal of Economics and Finance,25, 94-108. Macleod, D. (2015). Review of" The Selling of Free Trade: NAFTA, Washington, and the Subversion of American Democracy," by John MacArthur.Journal of World-Systems Research,10(2), 558-560.