International Business Issues 2022

INTERNATIONAL
BUSINESS

1
Issues in Trans-pacific partnership
Trans-pacific partnership is known as a free-trade agreement among the U.S. and other 11
nations that is bordering Pacific Ocean (Smith, 2018). This decision faced criticism due to
different issues which includes:
 It had benefitted working making more than $88,000 in a year and it promotes
cheaper goods from low waged nation. This will be burden for the companies that are
from the countries having higher cost of operations.
 Another issue with the TPP is the fact that it should have been profiting more to the
higher paid owners of the intellectual property would have received higher numbers
of income gains.
 Another major issue with this is the fact that they are facing competitive business
pressures which will reduce the incentives in Asia for protecting the environment. At
the same time trade agreements could supersede financial regulations (Amadeo,
2019).
U.S. negotiators need to fight for making the deal more beneficial for the U.S. Patents needs
to be given more priority where it should be made more beneficial for the owners of the
patents. State-owned firms needs to comply with global trade standards that safeguard their
employees and environment. U.S. investors need to get some hold on the tariff protection
especially for the farming sector.

2
References
Amadeo, K. 2019. Trans-Pacific Partnership Summary, Pros and Cons. Retrieved from:
https://www.thebalance.com/what-is-the-trans-pacific-partnership-3305581
Smith, R. 2018. Here’s what you need to know about the Trans-Pacific Partnership. Retrieved
from: https://www.weforum.org/agenda/2018/05/trans-pacific-partnership-what-to-
know/