Friday, February 14, 2020

TPP-Pacific Trade Partnership and International Business Research Paper - 1

TPP-Pacific Trade Partnership and International Business - Research Paper Example Trans-Pacific Partnership is also of great interest because of its ambition to extend well beyond the limits of trade and trade policy including other different issues that affects trade agreements. The common issues that are likely to affect TPP are linked to the ambition of TPP to go beyond the limits of trade and its policies including trade in services, intellectual property, and technical barriers to trade. Supply chain complication has been cited as a major challenge likely to face Trans-Pacific partnership especially in this era of global business and cross enterprise collaboration. As stated by Inkyo et al (145), the Supply chain conference held in 2003 had cited development in the digital economy such as cloud computing, green growth and inadequate approaches to ensuring competitive business environment as some of the major challenges that are likely to face TPP. However, according to Deardorff (5), TPP is creating a framework to deal with all concerns and that could be the reason for the long time negotiations. The areas of negations in the Trans-Pacific Partnership include services and investments and other barriers to trade include in services, goods and investments, capacity building, government procurement, custom rules, labor, phytosanitary standards, e-commerce, telecommunications, intellectual property and technical barriers to trade. Researchers and economists have cited a lot of implications of what has been described as â€Å"spaghetti or noodle bowl† problem of overlapping preferential trade agreements (PTA) at the beginning of the year 2012, the world trade organization had reported more than 319 agreements that were already on force. According to Inkyo et al (147), each agreement signed between two or more countries continue to complicate and increases the complexity of the global trading system. The new PTA, Trans-Pacific Partnership that is currently under

Saturday, February 1, 2020

The Structure of Interest Rates and Real Interest Rates Coursework

The Structure of Interest Rates and Real Interest Rates - Coursework Example The credit card firms are not usually bound towards any form of specific limits regarding their ultimate interest rates. They can thus charge any amount they may wish to as long as they have commendable competitive rates with other existing credit card firms. Finally, the rates are often higher on credit cards so as to encourage people to make payments on time. It is based on the reasoning that; the longer you delay your repayments, the higher the interest penalties. The corporate bond’s credit ratings are often higher than those offered by the government bonds to a greater extent. This is because the corporate bonds usually have low ratings, thereby giving out an implication of a higher credit risk possibility as compared to the investment-grade bonds (Schwartzman, 1992). Therefore, they tend to offer a little bit higher rates so as to curb with the increased risks. On the other hand, the government bond’s credit ratings are often lower because they are not ultimately secured by any form of assets. They are instead backed up by the credit and full faith of the issuer. This is hence what brings out this form of disparity. Recession generally refers to a situation when there is a temporary decline with regards to the economic stability, whereby the trade and the industrial operations are totally reduced. It is generally identified by the fall in the GDP over a given successive quarters. Based on this, the interest rates tend to be reduced since it impacts on all the businesses (Guttentag & Cagan, 1969). Both small and large ventures tend to fall typically during this period. Ultimately, at such a moment the business borrowers and consumers are the ones who tend to determine the level of interests they are opting to pay for the borrowed money. There is often a greater interaction between the tax systems and interaction. This is due to a major binding factor between them that touches on the aspect of the amount of