International Trade and Finance

Running head: INTERNATIONL TRADE AND FINANCE
International trade and finance
Name of the student
Name of the university
Author’s note

1INTERNATIONAL TRADE AND FINANCE
Table of Contents
Introduction......................................................................................................................................2
Answer 1..........................................................................................................................................2
Answer 2..........................................................................................................................................4
Answer 3..........................................................................................................................................6
Answer 4..........................................................................................................................................8
Recommendations............................................................................................................................9
Conclusion.......................................................................................................................................9
References......................................................................................................................................10

2INTERNATIONAL TRADE AND FINANCE
Introduction
The present study provides an insight about the importance of Transatlantic Trade and
Investment Partnership (TTIP) for the two economies. The proposed TTIP is the comprehensive
trade deal between US and European Union, which aim to promote trade as well as economic
growth. Free trade is important for all nations as it helps to enhance economic growth. Since both
US and EU have been struggling with low economic growth, consistently with high
unemployment and huge government deficit, free trade agreement help the economies to reduce
unemployment and increase economic growth (De Ville and Siles-Brügge 2015). Specific groups
that include- NGOs, charities, mainly oppose this agreement as this might reduce regulations in
few areas of banking and food safety benefitting large enterprises. TTIP negotiations is also
aimed at improving regulatory convergence in aiding trade as well as investments, decreasing
non- tariff barriers and opening up service market across Atlantic. Besides financial as well as
economic benefits, this TTIP has geostrategic effect as it vicariously reinforces strong ties, which
exists between US and Europe. However, TTIP is the Western partnership with mature and well-
developed markets on one hand and strong defense relationship based on NATO (North Atlantic
Treaty Organization) on the other. This study however focuses on how TTIP improved the
economic condition of both US and Europe Union.
Answer 1
A TTIP agreement usually builds on close EU and US relationship and also demonstrates
leadership on trade agenda. The major aims of TTIP is to decrease cost of meeting varied
regulations by promoting higher compatibility between EU and US. It also aims at creating
integrated transatlantic marketplace that maintains high level of safety, health and environmental
protection. It brings in benefits to the consumers that includes larger choice, increase in job

3INTERNATIONAL TRADE AND FINANCE
opportunities and cheaper products. This TTIP agreement provides huge opportunity for EU and
US to establish trade rules as well as aid to secure transatlantic community position in the world
economy (Felbermayr and Larch 2013).
TTIP will benefit the businesses in EU by making it easier to access the market that
involve large number of US customers. Specifically, small businesses will find it easier to export
due to reduced differences in regulatory, low trade tariffs, smother processes of customs and
accessibility to US public procurement markets. In addition to this, TTIP will also benefit the
customers to widen certain range of goods that are available in the market. It will also help to
decrease costs of trade, leading to cheap goods and rise in job opportunities as well as wages
(Akhta et al. 2014). However, this will also benefit average household in the country by saving
larger amount of money. TTIP will also decrease remaining trade tariffs on all trade. The EU
tariffs that are presently on the cars, food products and electronics will further reduce the cost
due to TTIP.
Under TTIP, both US and EU would abolishes import duties that has been already low,
thereby averaging to 3%. This abolition would save the companies huge amount of money and
provide them huge scope to make investment and expand. Apart from this, this agreement will
also facilitate new businesses to expand their market as well as enable them to enhance its total
production. Furthermore, TTIP would also drive innovation in businesses and make regulation
better as well as efficient, thereby reducing costs for customers. By utilizing best practices from
two sides of Atlantic would reduce regulatory duplications as well as costs, which impede
investment and innovation (Henckels 2016). A cooperation of EU and US on the transatlantic
regulatory problems could be set up since the transatlantic regulatory body would control