...DR-CAFTA International Trade and Commerce Celia Porras UAM-CUSE 11/5/2012 Table of Content I. Introduction………………………………………………………………………. II. Description of the Subject……………………………………………….. III. Goals and Objectives……………………………………………………….. IV. Historical Background…………………………………………………….. V. Analysis of the subject a. Strengths………………………………………………………………….. b. Weaknesses……………………………………………………………… c. Opportunities………………………………………………………….. d. Threats……………………………………………………………………... VI. Prescription and Recommendations………………………………. VII. Difficulties in Implementation…………………………………………. VIII. Solutions to the Difficulties………………………………………………. IX. Prognosis…………………………………………………………………………… X. Conclusion…………………………………………………………………………. XI. References…………………………………………………………………………. I. Introduction The Dominican Republic-Central America free trade agreement between these six countries and the superpower of the United States is the first among these countries. What this free trade agreement does is to create new and strong economic opportunities by opening markets, eliminating tariffs, and reducing barriers to service. The agreement helps to facilitate trade and investment between the participants, as well as promoting and increasing regional integration (Anonymous). DR-CAFTA presents a huge opportunity for Central American countries and the Dominican Republic; as they have the chance to trade with the biggest economy...
Words: 3358 - Pages: 14
...ALFONSO MILLER FRAIGE 690506 MERCADOTECNIA GLOBAL VIDEO STUDY “CAFTA” 19/ 10/2015 1- How would Adam Smith view CAFTA and other proposed free trade agreements? - The notion of a free trade system encompassing multiple sovereign states originated in a rudimentary form in 16th century Imperial Spain. American jurist Arthur Nussbaum noted that Spanish theologian Francisco de Vitoria was "the first to set forth the notions (though not the terms) of freedom of commerce and freedom of the seas."[12]Vitoria made the case under principles of jus gentium. However, it was two early British economists Adam Smith and David Ricardo who later developed the idea of free trade into its modern and recognizable form. Economists who advocated free trade believed trade was the reason why certain civilizations prospered economically. Adam Smith, for example, pointed to increased trading as being the reason for the flourishing of not just Mediterranean cultures such as Egypt, Greece, and Rome, but also of Bengal (East India) and China. The great prosperity of the Netherlands after throwing off Spanish Imperial rule and pursuing a policy of free trade made the free trade/mercantilist dispute the most important question in economics for centuries. Free trade policies have battled withmercantilist, protectionist, isolationist, communist, populist, and other policies over the centuries. * More than anything seen on the political commitments and having to accept less than perfect...
Words: 486 - Pages: 2
...set free and granted the freedom not to.NAFTA also provides for guaranteed access to lucrative government procurement contracts in Canada and Mexico.NAFTA destroys American Sovereignty via the creation of supranational panels and commissions. It also castigates courts by infringing on and overriding their jurisdiction as well as giving no stand to seek state redress. Since the implementation of the unconstitutional NAFTA, America has tremendously lost several hundreds of thousands of jobs. Generally has led to the loss of jobs rather than creating jobs as was expected. (Mace, G. (2007). CAFTA (Central American Free Trade Agreement), free trade agreement or treaty under international law but not under U.S law. CAFTA was primarily created with the purpose of creating new and better economic chances by opening markets, eliminating tariffs, reducing barriers to services among others.IN CAFTA, investors enjoy some basic protections such as nondiscriminatory treatment relative to domestic investors as well as investors of non-parties, performance...
Words: 713 - Pages: 3
...| IMPACT CHINA ASEAN FREE TRADE AGREEMENT (CAFTA) ON INDONESIA ECONOMYWritten by Yuliana (15 Jan 2015)Overview of ASEAN – CHINA Free Trade Agreements In November 2001, ASEAN and China agreed to launch negotiations for an ASEAN-China Free Trade Area (ACFTA). In the following year, ASEAN and China signed the Framework Agreement on Comprehensive Economic Cooperation between ASEAN and China.The objectives of this Agreement are to: (a) | strengthen and enhance economic, trade and investment co-operation between the Parties; | (b) | progressively liberalise and promote trade in goods and services as well as create a transparent, liberal and facilitative investment regime; | (c) | explore new areas and develop appropriate measures for closer economic co-operation between the Parties; and | (d) | facilitate the more effective economic integration of the newer ASEAN Member States and bridge the development gap among the Parties. | | | | The Agreement on Trade in Goods was signed in 2004 and implemented in 1 July 2005 by the ASEAN countries and 20 July 2005 by China. Under this Agreement, the 6 original ASEAN members and China have to eliminate tariffs on 90% of their products by 2010, while Cambodia, Lao PDR, Myanmar and Vietnam, have until 2015 to do so. | | | | | | The Trade In Services Agreement entered into force in July 2007. Under this agreement, services and services suppliers/providers in the region will enjoy improved market access and national treatment...
Words: 1798 - Pages: 8
...China-ASEAN Economic Relations: Development And Future Challenge. Abstract: In recent 15 years, The development of China-ASEAN trade and economic relations has of great significance, not only for both sides but also for the whole East-Asia region. This paper to discuss the latter that is regional implications of 15 years’ development of China-ASEAN trade and economic relations and find the problem and challenge in China-ASEAN trade relations, as well as provide some further consideration for both sides’ trade and economic relations. Introduction Since the economic reforms and open-door policy of1978-79, China's economy has been growing rapidly and more particularly since 1990 when growth has averaged 10% a year. China's external trade has been growing at an even faster rate of 15% a year since 1990, and it has also annually drawing from the lessons of the financial contagion of 1997. Economic links between ASEAN and China through trade, investments and tourism have prospered throughout the 1990s. Perhaps, equally important, China's maintenance of the value of the renminbi (RMB) during the economic crisis of 1997, served as a regional anchor preventing what could possibly have been successive rounds of competitive devaluations. This clearly prevented the crisis from becoming more acute for ASEAN countries and yet this put China’s own exports at risk, as much cheaper goods from the crisis-plagued region competed with Chinese goods. Another important milestone that contributed...
Words: 6269 - Pages: 26
...trade barriers, for example protecting intellectrual property rights, patents, trademarks, and copyrights, but it is difficult to protect them from unscrupulous business from other countries. 6. NTBs In recent years, however, the United States-as well as most countries world-wide, has established bilateral or multilateral free-trade agreements (FTAs) between two or more countries to eliminate tariff and non-tariff barriers affecting trade among themselves. 7. Portfolio Investment It is a non-controlling interest in a venture made in the form of either debt or equity. 8. SMEs It benefits from the tariff-eliminating provisions of free trade agreements, and should benefit from the significant tariff cuts required under the CAFTA-DR. The transparency obligations, particularly those contained in the customs chapters, are also very important to SMEs, which may not have the resources to navigate customs and regulatory red tape. 9. Joint venture On form of merger is a joint venture, a direct investment in which two or more partners share ownership. 10. G7 Finance ministers met in Rome in February 2009 to affirm their pledges to avoid resorting to protectionism as they try to stimulate their own economies in the face of the world’s worst economic crisis since the depression era of the 1930s....
Words: 871 - Pages: 4
...Regional Economic Integration Learning objectives • Be able to explain the different levels of regional economic integration. • Understand the economic and political arguments for regional economic integration. • Understand the economic and political arguments against regional economic integration. • Be familiar with the history, current scope, and future prospects of the world’s most important regional economic agreements. • Understand the implications for business that are inherent in regional economic integrations agreements. This chapter discusses regional economic integration, agreements among countries within a geographic region to achieve economic gains from the free flow of trade and investment among themselves. There are five levels of economic integration. In order of increasing integration, they include free trade area, customs union, common market, economic union, and full political union. Integration is not easily achieved or sustained. Although integration brings benefits to the majority, it is never without costs for the minority. Concerns over sovereignty often slow or stop integration attempts. The creation of single markets in the EU and North America means that many markets that were formerly protected from foreign competition are now more open. This creates major investment and export opportunities for firms within and outside these regions. The free movement of goods across borders...
Words: 6443 - Pages: 26
...Introduction The following investigative document presents an overview of the textile industries in two emerging countries: Guatemala and India. The document analyses, compares and contrast the differences in the institutional structures of both countries and offers specific details and analysis of the textile industries for local and international businesses. Guatemala Republic of Guatemala is located in Central America bordered by Mexico to the North, the Pacific Ocean to the southwest, and Belize to the North East Honduras and El Salvador to the southeast. The country is mountainous with small desert and sand dune patches, having many hills filled with people, except for the south coastal area and the vast northern lowlands of Petén department. Two mountain chains enter Guatemala from west to east, dividing the country into three major regions: the highlands, where the mountains are located; the Pacific coast, south of the mountains; and the Petén region, north of the mountains. All major cities are located in the highlands and Pacific coast regions; by comparison, Petén is sparsely populated. These three regions vary in climate, elevation, and landscape, providing dramatic contrasts between hot and humid tropical lowlands and colder and drier highland peaks. Volcán Tajumulco, at 4,220 meters, is the highest point in the Central American states. Demographics Guatemala is a country of youth; 70% of its population is less than thirty years old. The capital...
Words: 4120 - Pages: 17
...China dengan Indonesia 2005 Hubungan dagang Indonesia-Cina memang terus meningkat, terutama setelah ditandatanganinya kerjasama Kemitraan Strategis pada tahun 2005. Kunjungan resmi pertama Perdana Menteri Jiabao ini mengukuhkan hal itu. 2010 Pemerintah Indonesia dan China menyepakati empat poin kerja sama ekonomi, yakni pembiayaan, perdagangan, investasi, serta pembangunan infrastruktur. Kesepakatan kedua negara dalam kerja sama itu dituangkan dalam nota kesepahaman yang ditandatangani perwakilan kedua negara dan disaksikan oleh Wakil Presiden Boediono di Beijing,Rabu. Empat nota kesepahaman yang ditandatangani tersebut adalah kesepakatan memperluas dan mempererat kerja sama ekonomi dan perdagangan kedua negara, kesepakatan pembiayaan bagi perdagangan dan investasi antara Lembaga Pembiayaan Ekspor Indonesia (LPEI) atau Bank Exim Indonesia dengan Bank Exim China. Pada kesepakatan itu ditandatangani pula kesepakatan kedua negara untuk meningkatan kerja sama pembangunan infrastruktur, serta penandatanganan pembangunan proyek PLTU Celukan Bawang, Bali Utara berkapasitas 3x1500 MW. Menteri Perdagangan Mari Elka Pangestu mengatakan, Lembaga Pembiayaan Ekspor Indonesia (Indonesia Eximbank) mendapat fasilitas pendanaan sebesar 350 juta dolar AS dari Industrial & Commercial Bank of China untuk meningkatkan pembiayaan perdagangan dan investasi di dalam negeri. "Lembaga Pembiayaan Ekpor Indonesia (LPEI) mendapat fasilitas 350 juta dolar AS dari China Exim...
Words: 4276 - Pages: 18
...BLC Essay 2 Isidro Morales describes US trade policies towards Latin America as a ‘neo-liberal corporate-led agenda’. Discuss the validity of his claim, as well as the desirability of extending the model of regional integration preferred by Washington to all of the Americas. “Since trade ignores national boundaries and the manufacturer insists on having the world as a market, the flag of his nation must follow him, and the doors of the nations which are closed against him must be battered down. Concessions obtained by financiers must be safeguarded by ministers of state, even if the sovereignty of unwilling nations be outraged in the process. Colonies must be obtained or planted, in order that no useful corner of the world may be overlooked or left unused.” Woodrow Wilson, President of the United States, 1919 Madalina Daniela Costache Robert Ibsen British and American Studies – 2XBF November 8th 2013 Number of words: 938 With the emergence of the Washington consensus, the US foreign policy shifted towards a neoliberal model in order to deal with the pressures incited by globalization. Neoliberal theory argues for the development of a free market economy where there is a high degree of free individual choice, and which achieves efficient economic performance by reducing the state’s intervention solely to “defining property rights, enforcing contracts, and regulating the money supply” (Kotz 2000). This essay argues that, as Morales claims, the US does pursue a...
Words: 1193 - Pages: 5
...Chapter 15 GLOBAL OPPORTUNITIES Instructor ANAND TULADHAR Scribe NEHA KAYATSHA GEETA KHADKA 10th July, 2015 1. Explain why “going global” has become an integral part of many small companies’ marketing strategies. Companies that move into international business can reap many benefits, including offsetting sales declines in the domestic market; increasing sales and profits; extending their products’ life cycles; lowering manufacturing costs; improving competitive position; raising quality levels; and becoming more customer oriented. 2. Describe the principal strategies for going global. Perhaps the simplest and least expensive way for a small business to begin conducting business globally is to establish a site on the World Wide Web. Companies wanting to sell goods on the Web should establish a secure ordering and payment system for online customers. Trade intermediaries such as export management companies, export trading companies, manufacturer’s export agents, export merchants, resident buying offices, and foreign distributors can serve as a small company’s “export department.” In a domestic joint venture, two or more U.S. small companies form an alliance for the purpose of exporting their goods and services abroad. In a foreign joint venture, a domestic small business forms an alliance with a company in the target area. Some small businesses enter foreign markets by licensing businesses in other nations to use their patents...
Words: 823 - Pages: 4
...------------------------------------------------- Free Trade Area of the Americas From Wikipedia, the free encyclopedia The Free Trade Area of the Americas logo The Free Trade Area of the Americas (FTAA) (Spanish: Área de Libre Comercio de América [ALCA], French: Zone de libre-échange de Amérique [ZLÉA],Portuguese: Área de Livre Comércio das Américas [ALCA], Dutch: Vrijhandelszone van Amerika) was a proposed agreement to eliminate or reduce the trade barriers among all countries in the Americas excluding Cuba. In the latest round of negotiations, trade ministers from 34 countries met in Miami, United States, in November 2003 to discuss the proposal.[1] The proposed agreement was an extension of the North American Free Trade Agreement (NAFTA) between Canada, Mexico, and the United States. Opposing the proposal were Cuba, Venezuela, Bolivia, Ecuador, Dominica, Nicaragua and Honduras (all of which entered theBolivarian Alternative for the Americas in response), and Argentina, Chile and Brazil. Discussions have faltered over similar points as the Doha Development Round of World Trade Organization (WTO) talks; developed nations seek expanded trade inservices and increased intellectual property rights, while less developed nations seek an end to agricultural subsidies and free trade in agricultural goods. Similar to the WTO talks, Brazil has taken a leadership role among the less developed nations, while the United States has taken a similar role for the developed nations. Free...
Words: 1456 - Pages: 6
...* Quizzes Home * Summary * Submissions Selected * Reports ------------------------------------------------- Top of Form Xiaoshu Zhang (username: xzhang2) | To Submissions ------------------------------------------------- Attempt 1 Written: Mar 3, 2012 1:28 AM - Mar 3, 2012 1:57 AM ------------------------------------------------- Submission View Your quiz has been submitted successfully. Quiz 8 Chapters 19 and 20 | Question 1 | | 1 / 1 point | Critics charge that intermediaries ________. | | are too few in number | | | are inefficient | | | provide only necessary services | | | underprice their services | | | are too competitive | Question 2 | | 1 / 1 point | ________ calls for meeting the present needs of consumers and businesses while also preserving or enhancing the ability of future generations to meet their needs. | | The sustainable marketing concept | | | Innovation | | | Consumerism | | | Environmentalism | | | The strategic planning concept | Question 3 | | 1 / 1 point | What are deficient products? | | products that have neither immediate appeal nor long-run benefits | | | products that give high immediate satisfaction but only hurt consumers in the long run | | | products that have low appeal but may benefit consumers in the long run | | | products that are either unsafe or inferior | | | any product in the decline stage of the product life cycle | Question 4 |...
Words: 1195 - Pages: 5
...North C arolin a Polic y Wa t c h Cru cial Co nv ersa tion The Trans-Pa cific Partnership: Worse than NAFTA? Septemb er 2013 Lori Walla ch Public Citizen’s Global Trade Watch Outcomes of 20 Ye ars of NAFTA, WTO, FTAs… Crushing of Americ an Middle Class: more than 5 million US manufa cturing jobs (1 out of 4) & 60,000 US manufa cturing fa cilities gone. Millions of service sector jobs offshored: c all centers, computer, programming, engineering, a cc ounting. Wage “arbitrage” in a ra ce- to-the- bottom. U.S. re al median wages at ‘70s levels. Income inequality at Robb er-Baron-era levels. When manufa cturing, good jobs go tax bases shrink – and schools, public services, infrastructure cut, and construction sector unemployment soars. Floods of unsafe imported food, products. Financial deregulation, instability and repe ated financial crises. He alth, labor, land use, other public interest laws around world atta cked in foreign tribunals. Some dump ed. Initiatives chilled. Billions extra cted from taxpayers and paid to corporations for violations of new “rights.” Drug prices up. In poor nations, de adly cut in a cce ss to meds. Rich nation higher prices slam poor consumers, govt budg ets as Big PhRMA profits soar. U.S. loses 170,000 family farms. In ‘12, volume of U.S. food exports only 1% higher than ’95 (when NAFTA-WTO started). Imports of food now 97% above ‘95 level. Livelihoods of tens of millions of pe asant farmers destroyed, mass migrations...
Words: 4495 - Pages: 18
...Global Issue | Challenge (Yes or No) | Why is it a challenge | Cultural challenges | YES | Different countries vary * Tastes * Gestures * Treatment of people * Ethical issuesThis difference can significantly affect individuals and organizations involved in global trade. | Language challenges | YES | * International parties must agree on common language * Data not transmittable internationally because information must be translated; computers still cannot accurately translate on the fly * English considered de facto international language * Many countries require accounting systems to be in the local language | Time and distance challenges | YES | * Crafting policies that work for employees, customers, and IS for all time zones * Time stamping | Infrastructure challenges | YES | High-quality electricity and water might not be available in certain parts of the world. * Telephone services * Internet connections * skilled employeesmight be expensive or not readily available. | Currency challenges | YES | The value of different currencies can vary significantly over time, making international trade more difficult and complex | Product and service challenges | YES | Traditional products that are physical or tangible, such as a car or bicycle, can be difficult to deliver to the global market. However, electronic products (e-products) and electronic services (e-services) can be delivered to customers electronically, over the phone, networks...
Words: 409 - Pages: 2
