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International Trade

Article Analysis International Trade

According to the April 13, 2005 issue of ôBRIDGES Weekly,ö seven Asian countries have decided to pursue a preliminary agreement on trade liberalization in industrial goods. The seven nationsùChina, Hong Kong, Indonesia, Japan, the Philippines, Singapore, and Thailandùagreed to try for a consensus on a tariff-cutting formula and move ahead on non-agricultural market access (NAMA). The article states,

Japanese Trade Minister Shoichi Nakagawa told local news wires that the attendees had supported a personal paper he had put forward, in which he called for "higher rates of reduction" to higher tariffs. He also said that they had agreed that setting maximum limits for duties on some goods for which tariffs have remained 'unbound' thus far was "essential," and that the tariff-reduction formula would apply to such tariffs as well (BRIDGES Weekly).

Prior to this meeting, WTO talks on market access for industrial goods were deadlocked over the tariff reduction formula. Developing countries at the last NAMA meeting criticized U.S. and E.U. tariff cut proposals as placing ôa disproportionate burdenö on developing nations (BRIDGES Weekly).

The implications of the agreement for Nike are very positive. With lower tariffs, Nike will make a larger profit overseas than it otherwise would have for the same volume of product and the same expenditure for materials. Although this will likely damage the economy of the nations where Nike sells its goods, since the local merchants there will probably not be able to compete with Nike, it is a great prognosticator for increased overseas business and profits for Nike.

Stock price indices are listed as leading indicators. What does this tell you about stock prices? Stock prices reveal not only the state of the market but also the state of the economy and the level of consumer confidence. They are a sensitive, responsive indicator; whenever any of ...

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International Trade. (1969, December 31). In LotsofEssays.com. Retrieved 05:58, March 29, 2024, from https://www.lotsofessays.com/viewpaper/1712744.html