This is our Econ’s case study. And we need to prepare a Case Deliverable report. Please read the case first. It’s not too long. And then answer TWO questions below. Our team needs to focus on NEW BALANCE. Thank you so much!
Questions:
1.Trade is promoted by the WTO. Chronologically document the WTO entry process and the dispute/settlement process for Vietnam. Explain how the WTO processes allow for “protectionismвЂк, “free tradeвЂк, “fair tradeвЂк, and for businesses to gain (and lose) from trade.
2.With regard to the elimination of import tariffs on Vietnamese footwear, is what is good for Nike Inc. also in AmericaвЂTMs economic interests? What about New Balance?
You can use bullet points in this report. Bullet points should be used to simplify and shorten the text narrative.
Case Deliverable Report
Student’s Name
Institutional Affiliation
Case Deliverable Report
1. WTO Entry Process
The WTO entry process of a nation is usually subject to accepting the agreed terms. The nation would apply for entry into the WTO. The WTO entry process is a negotiation process different from the accession process in diverse international organizations such as IMF that have a systematic process. The entry WTO process is largely negotiable. After applying to TWO, the decisions will be made by the general council of the organization. The dispute resolution process for Vietnam involves the use of the structured approach to addressing disputes, which emerges between the numerous parties engaged in the legal and business relationships. The dispute resolution methods will include mediation and negotiation processes.
The WTO processes are useful in allowing for protectionism as the national member states can protect the local firms through restrictive trade actions. However, it helps in promoting free trade, fair trade and increased gains for the businesses from trade. The WTO helps in promoting market liberalization and connectivity of the diverse trade regions globally.
2. Elimination of Import Tariffs
The elimination of the import tariffs on Vietnamese footwear is not good for Nike Inc and the American economic interests. It is because the removal of import tariffs on Vietnamese footwear would increase the competitiveness of the footwear industry in the U.S. It would also lead to increased job losses which are negative implications to the American economic interests. Similarly, New Balance would not benefit from the elimination of import tariffs on the Vietnamese footwear because it would push the local U.S firms into closure. Opening the U.S footwear industry to the Vietnamese footwear manufacturers threatens the U.S economy due to the potential job losses that would lead to a decline in economic growth. It is important that the terms of the trade agreements be reviewed to ensure that the local U.S firms are not increasingly affected.
Reference
Brodeur, S., & Assche, V. A. (2014: 2024 – Essay Writing Service | Write My Essay For Me Without Delay). Nike versus new balance: Trade policy in a world of global value chains. International Journal of Case Studies, 12(4), 1-16.
