Question

International trade agreements have been in the news recently, from Britain’s decision to leave the EU to the United States pulling out of the agreement on TPP and the U.S. re-opening negotiations on NAFTA. Discuss the expected winners and losers from such events and how these events might affect attempts at international expansion, foreign direct investment, and enforcement of international regulations.

Answer 1

Britain's Decision to leave EU:

International or Foreign companies investing in R&D, manufacturing and other business are shifting their business out of Britain due to increase in costs and no more benefits of being part of the European Union. FDI inflow is going to be very slow. UK is not doubt a loser in those scenarios as the Brexit took place with no deal.

US getting out of TPP:

It will impact the US farmers who export most of their food products to Japan.The agreement for the patents would have decreased the low cost generics, thereby increasing the cost of other drugs. FDI in another CPTPP countries will go down and the same will happen with US.

US planning to come back to NAFTA:

Debate continues encompassing NAFTA's impact on its human countries. whereas the u. s., Canada, and North American nation have all intimate economic process, higher wages, and enlarged trade since NAFTA’s implementation, consultants disagree on what quantity the agreement truly contributed to those gains, if at all, on U.S. producing jobs, immigration, and therefore the worth of goods.