Essay about Economic Geography And Trade Agreements

Essay about Economic Geography And Trade Agreements

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1. A) It’s logical that most trade groups contain countries in the same area of the world such as NAFTA which comprises of U.S, Canada and Mexico. There are a number of reasons why economic geography matters in the case of trade agreements. Neighboring countries often, though not always, share a common history, language, culture and currency. Close proximity reduces transportation costs thereby making traded products cheaper in general. Trade is likely to rise by 80% between countries with a common border, 200% with a common language such as English between U.S. and Canada, and 340% with common currency such as the euro for countries in the EU that have adopted the euro. Another strong incentive for geographically close countries to establish trade agreement is that trade among trading bloc members is likely to rise by 330% compared with not being in a trade agreement.

B) There are several trade benefits that nations can get. Some of these trade benefits are; enhancement of the domestic competitiveness, access to technological products, gains in global market share which also increase sales and profits. Trade also maintain cost competitiveness in a domestic market, reduce dependence on existing markets and enhance potentials for expansion of local business.

C) Countries which sell primary commodities and buy manufactured goods in return are losers. The standard of living of the people in such countries remains low. And the pity is that this state of affairs tends no persist. Foreign trade under such conditions leads more to discontent and unrest than to peace and goodwill.

D) Any 21st century trade agreements such as TPP should not elevate the rights of private firms over governments and should provide safeguard measures to ma...

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...ancial system. I chose Shanghai because I want a branch in the mainland of China and Shanghai happens to be the financial and commercial city in the mainland of China. Also because of the creation of Asian Infrastructure Investment Bank, it will be prudent to have a banking branch in mainland China. Tokyo on the other hand is the capital of third largest economy country in the world. Having a bank branch there will only lead to success because most of the financial resources of the world will somehow pass through Tokyo. Dubai is the only city I chose in the middle east. This is because Dubai is about to become a major shipping hub beside Rotterdam. Dubai is also investing heavily in infrastructure because it wants to diversify and move away from oil dependency. Tourism is also booming in this major city in Middle East thus major investment in the aviation industry.

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