EU-U.S. Plans for Free Trade Pact (Essay) - 2750 Words

EU-U.S. Plans for Free Trade Pact (Essay Sample) Content: EU-U.S. Plans for Free Trade PactNameCourseTutorDateTable of Contents TOC \o "1-3" \h \z \u  HYPERLINK "file:///C:\\Users\\clinton\\AppData\\Local\\Temp\\m%20learning.doc" \l "_Toc323822567"
Introduction 3W HYPERLINK "file:///C:\\Users\\clinton\\AppData\\Local\\Temp\\m%20learning.doc" \l "_Toc323822570"
hy the world would benefit from the free trade deal beteen EU and US 3 HYPERLINK "file:///C:\\Users\\clinton\\AppData\\Local\\Temp\\m%20learning.doc" \l "_Toc323822571"
Globalization and free trade deal 5 HYPERLINK "file:///C:\\Users\\clinton\\AppData\\Local\\Temp\\m%20learning.doc" \l "_Toc323822572"
Overall Economic Results 6 HYPERLINK "file:///C:\\Users\\clinton\\AppData\\Local\\Temp\\m%20learning.doc" \l "_Toc323822573"
The national income effect 6 HYPERLINK "file:///C:\\Users\\clinton\\AppData\\Local\\Temp\\m%20learning.doc" \l "_Toc323822574"
Changes in aggregate trade flows 6 HYPERLINK "file:///C:\\Users\\clinton\\AppData\\Local\\Temp \\m%20learning.doc" \l "_Toc323822575"
Changes in bilateral trade 7 HYPERLINK "file:///C:\\Users\\clinton\\AppData\\Local\\Temp\\m%20learning.doc" \l "_Toc323822576"
Challenges and how mobile learning would overcome them 8 HYPERLINK "file:///C:\\Users\\clinton\\AppData\\Local\\Temp\\m%20learning.doc" \l "_Toc323822580"
Balance of payment changes 8 HYPERLINK "file:///C:\\Users\\clinton\\AppData\\Local\\Temp\\m%20learning.doc" \l "_Toc323822581"
Exchange rate 9 HYPERLINK "file:///C:\\Users\\clinton\\AppData\\Local\\Temp\\m%20learning.doc" \l "_Toc323822582"
Net effects on consumers and producers 10 HYPERLINK "file:///C:\\Users\\clinton\\AppData\\Local\\Temp\\m%20learning.doc" \l "_Toc323822583"
Consumers 10Producers10Conclusion11references12IntroductionAccording to news by Reuters on 7 May 14, 2013, China is worried about EU and US plans, for free trade pact. EU and U.S are expected to negotiate an ambitious free trade agreement. According to EU official, Ch ina fears that the deal is a protectionist one. In other words, China feels that the move would insulate the two regions from the rest of the world. Currently, EU and America are the world biggest trading partners. They account for one third of the worlds trade and a half of the worlds GDP. Both of them are the biggest investors in one anothers economies. The tariffs between the two regions are 3 percent on average, among the least in worlds regional integrations. However, non-tariff barriers between the two regions are stricter. According to EU officials, they aim to open up the US requirement market. Currently the EU procurement market is more open than the US. One of the key reasons behind this is the fact that the government of US cannot compel states to open up their procurement system to the foreign bidders. Although the EU is keen on the deal, it would mean a lot to them given the fact that the region has not yet recovered from the euro zone crisis. Additionally, economists differ on the potential outcome and some think that the move could destroy WTO (Prestowitz,2011). I believe the move would not insulate the two regions from the rest of the world, but would benefit the entire world.Why the whole world would benefit from the trade deal between EU and USOn of the key reasons why the numerous countries across the globe would benefit from the deal is the fact that the deal would enhance efficiency in production of the goods and services within the two regions. Output level as well would increase significantly. It is not only the two regions, which would benefit from the deal, but numerous other countries as well. This is because the two regions make the largest proportion of the worlds trade. Therefore, benefits that would arise within the two regions would spill over to other countries (Gabriel, 2013).According to the theory of comparative advantage, countries should specialize in production of what they produce using the least opportunity cost (Carba ugh, 2012). In other world, countries should produce what they are best in its production i.e. producing cheaply. The free trade deal between EU and US would promote specialization within the two regions. Each region would specialize in producing what it produces cheaper than the other region. This would result to increased output within the two regions. Given the fact that EU and US, make 50 percent of the world GDP, the world GDP would grow significantly because of the deal. This would mean job creation across the world. Over the last half a decade, the global unemployment rate has been on rise. By increasing trade between the two regions, many people would be employed to facilitate the increase in production as demand for goods and services increases. US would be the biggest winner in the deal. The growth of bilateral trade between the two regions would mean a lot to US. One of the key reasons behind this is the fact that more of its good flow to EU than, those that flow from EU to US. Therefore, the US economy is expected to grow significantly. The United States firms would benefit more than the firms in EUs countries would. The firms within the EU would face more competition from American firms than before the deal. This is because the companies within the EU were already benefiting from the regions free trade agreement. Therefore, they will lose some of their markets to US firms. On the other hand, the US local firms would not lose more of their home advantages because; local firms always have an advantage than the foreign firms (Feenstra, 2011).The EU would be the second largest gainer from the trade. This is because of the growth of the market in which they serve. Those EUs firms that produce products at the least opportunity cost would benefit from the US market. Therefore, the US markets that produces those products would face increased competition from the EUs firms. Global firms within the two regions would increase their competitive advantage rel ative to other global firms across the globe. This is because of increased profitability. They would be able to finance their strategic plans using the increased revenue and profitability. Additionally, efficiency within the firms would increase significantly and, therefore, they would be able to produce goods and services at lower cost of production than other global organizations. This would translate into lower prices of goods and services. By charging competitive prices in the global market, these firms would increase their market share, which would translate into increased profits.Globalization and the Free Trade DealBecause of the increased connectivity amongst nations across the world, the trade agreement between EU and US would have positive effects to the rest of the world. Globalization has boosted the mobility of factors of production across the world. Therefore, the increase in production within the two regions would demand more factors of production, for example, labor and capital. Because of globalization, people from countries outside the two regions would as well benefit from increased demand for labor. Many global organizations are outsourcing cheap labor from the emerging economies, for example, India and China, as a way of boosting their competitive advantage. Therefore, countries with low cost labor would benefit a lot from the deal. Some of the companies within EU and US would as well shift their operations to low labor cost countries, for example, African countries and then transfer the finished goods to the EU and US. Additionally, the capital would as well flow from the rest of the countries into the two regions. For example, for firms to be able to meet the increased demand for goods and services, as they become cheap due to free trade, they would need capital in terms of equity and loans for expansion. They may access equity or loan capital from countries with low cost of capital in form of foreign direct investments. Countries with l ow cost of capital would benefit immensely through earning of returns from their invested capital i.e. through earning of interest and dividends.Overall Economics ResultsThe National income effectBecause of enhanced efficiency caused by liberalization within the two regions, the cost of producing goods and services would reduce significantly. This would translate into low prices of goods and services. Therefore, exports within the two regions to the rest of the world would be cheap. This would increase demand for exports from countries within the two regions thus increasing production. As the level of exports goes up, the national income within the countries in the liberalized regions would go up. Additionally, consumption within these countries as well would go up because of decrease in prices of goods and services. Consumption has a multiplying effect on the national income, which would go up as well. To increase production, firms would demand more labor, causing wages to increase . Through increased wages, t...

Books You Need to Read (That Arent on Your Summer Reading List)

119Summer is the perfect time to finally get to your reading list and though you might want to re-read Harry Potter and the Deathly Hallows for the third time, or buy the entire Young Adult section of your nearest Barnes Noble there’s always another part of your life for the SAT to invade! There are tons of books out there which are genuinely good and can also improve your SAT Writing and Critical Reading scores. Learning new vocabulary doesn’t just mean memorizing flashcards! Here is a list of tons of books which can make a big difference in your vocabulary and reading level. Read those classics! Honestly, any classic novel is great for preparing for the SAT. They are classics for a reason! Lots of passages on the SAT are written in a more archaic, pre-twentieth century style. Therefore, reading pre-twentieth century novels can work wonders for your reading comprehension skills on test day. Classic novels which are culturally based are also ideal choices for summer reading. There is always a cultural passage on the SAT, and it never hurts to be a little more culturally aware. Try some of these†¦ Pre-Twentieth Century Classics Treasure Island by Robert Louis Stevenson Robinson Crusoe by Daniel Defoe Moby Dick by Herman Melville Anna Karenina by Leo Tolstoy War and Peace by Leo Tolstoy A Tale of Two Cities by Charles Dickens Scarlet Letter by Nathaniel Hawthorne Heart of Darkness by James Conrad The Picture of Dorian Gray by Oscar Wilde Wuthering Heights by Emily Brontà « The Last of the Mohicans by James Fenimore Cooper Crime and Punishment by Fyodor Dostoyevsky Twentieth Century Classics Brave New World by Aldous Huxley Blood Meridian by Cormac McCarthy From Here to Eternity by James Jones Gone With The Wind by Margaret Mitchell The Groves of Academe by Mary McCarthy 1984 by George Orwell As I Lay Dying by William Faulkner All Quiet on the Western Front by Erich Maria Remarque Animal Farm by George Orwell Catch-22 by Joseph Heller Culture-Centered Classics One Hundred Years of Solitude by Gabriel Garcà ­a Marquez The Joy Luck Club by Amy Tan The House on Mango Street by Sandra Cisneros Things Fall Apart by Chinua Achebe The Stranger by Albert Camus Ceremony by Leslie Marmon Silko Recommended Authors John Steinbeck Ernest Hemingway Jane Austen William Shakespeare Emily Brontà « Charlotte Bronte Charles Dickens Leo Tolstoy Kaplan SAT Score-Raising Classics You’ve probably read (or will read) a lot of these classics at school. If one of these classics is part of your required reading this summer, why not buy an edition that has been edited specifically to teach you vocab? Kaplan has a whole series of classics designed to help you boost your score. Each book has hundreds of high-level vocab words that are highlighted in the text, with definitions of said words displayed on the opposite side of the page. I have to admit: that’s almost as cool as this guy’s hair. Books in the series include: Dr. Jekyll and Mr. Hyde by Robert Louis Stevenson The Tales of Edgar Allan Poe by Edgar Allan Poe Frankenstein by Mary Shelley The War of the Worlds by H.G. Wells Wuthering Heights by Emily Brontà « The Scarlet Letter by Nathaniel Hawthorne Prestwick House: SAT Words from Literature Prestwick House has a similar series in which it highlights vocab words in classics, and shows their parts of speech, pronunciations, definitions, and synonyms or antonyms. It also provides exercises to help you remember definitions of words. This is so helpful if you want to learn vocab without feelinglike you’re learningvocab. Some books in the series include: Frankenstein by Mary Shelley Heart of Darkness by Joseph Conrad A Christmas Carol by Charles Dickens Miscellaneous Even the College Board itself has a great list of books which will improve your reading comprehension and vocabulary. It’s mainly composed of classics, which may seem boring at first—but many of these books are genuinely entertaining. Check them out at 101 Great Books Recommended for College-Bound Readers. If you don’t want to make any long-term commitments to books, but you’d still like to read a lot this summer, you can also read high-quality newspaper and magazine articles. The New Yorker, Reader’s Digest, Time, and The Atlantic Monthly are great choices. The type of writing in these publications is short and condensed, much like SAT passages. There’s something for everyone! Takeaway People who read frequently tend to do better on the Writing and Critical Reading sections than those who don’t. Making reading a habit, then, is a crucial part to studying for the SAT. And don’t stop after test day! Reading is a building block for knowledge and a building block for tons of skills you’ll need in your lifetime. If it isn’t already, make reading a daily habit. Unlike AP Chemistry, you really won’t regret it.