Final w/out VR

Final w/out VR

Published on 12 September 2020
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Transcript
00:02
GLOBALIZATION
00:05
Free Trade
00:22
Nagsend na si sir ng link ng zoom
00:22
Huy nasan ka na?
00:23
Report mo ngayon ah about sa Free Trade
00:35
Good Morning Everyone!
00:37
I will now start my reporting, feel free to turn on/off your cameras while my screen is shared to everyone. Thank you :)
00:44
Free Trade
00:47
What is a Free Trade Agreement? Is an arrangement involving Two or more countries to reduce import and export Agreements including loosening or eliminating tariffs Goods and services transported across regional lines Free trade agreements can be unilateral, bilateral, or multilateral
00:51
Not Strict
00:52
Import & Export
00:53
Free Trade
00:53
TRADE POLICY
00:56
Why Free Trade is a relevant issue in the Global Community?
00:59
Free trade helps to spread the: Value of Freedom, Reinforce the Rule of Law Foster Economic Development in Poor Countries. The national debate over trade-related issues too often ignores these important benefits
01:05
Who has been mostly affected by the issues of Free Trade Agreement?
01:09
Which are the world’s major free trade areas?
01:11
1. The North American Free Trade Agreement (NAFTA) Free trade between the three member nations Canada, the US and Mexico has been in place since January 1994.
01:12
2.Association of Southeast Asian Nations Free Trade Area (AFTA) Signed in January 1992 in Singapore. The original members were Brunei, Indonesia, Malaysia, Philippines, Singapore and Thailand. Four countries have subsequently joined: Vietnam, Laos, Myanmar and Cambodia.
01:14
3.Common Market of Eastern and Southern Africa (COMESA) Formed in December 1994, the organization aims to develop natural and human resources to benefit the region’s population. Its primary focus, according to the United Nations, is to establish a large economic and unit to overcome barriers to trade.
01:16
MEXICO For companies looking to manufacture in a foreign company like Mexico, free trade agreements offer many benefits. These include reduced barriers to trade and strong cooperation between nations concerning the exchange of goods and services.
01:17
With a total of 14 Mexico free trade agreements across more than 50 countries, the country has access to over 60 percent of the world's gross domestic product. By extension, it is no surprise that Mexico's top ten trading partners receive exports under stipulations from at least one of the country's Free Trade Agreements (FTAs), excluding China.
01:19
Disadvantages and Advantages Effects of Free Trade
01:24
DISADVANTAGES Increased Job Outsourcing: Reducing tariffs on imports allows companies to expand to other countries. Without tariffs, imports from countries with a low cost of living cost less. It makes it difficult for U.S. companies in those same industries to compete, so they may reduce their workforce. Many U.S. manufacturing industries did, in fact, lay off workers as a result of NAFTA. ​​ One of the biggest criticisms of NAFTA is that it sent jobs to Mexico.
01:27
Theft of Intellectual Property: Many developing countries don't have laws to protect patents, inventions, and new processes. The laws they do have aren't always strictly enforced. As a result, corporations often have their ideas stolen. They must then compete with lower-priced domestic knock-offs.
01:27
Poor Working Conditions: Multi-national companies may outsource jobs to emerging market countries without adequate labor protections. As a result, women and children are often subjected to grueling factory jobs in sub-standard conditions.
01:30
Reduced Tax Revenue: Many smaller countries struggle to replace revenue lost from import tariffs and fees
01:30
Crowd out Domestic Industries: Many emerging markets are traditional economies that rely on farming for most employment. These small family farms can't compete with subsidized agri-businesses in the developed countries. As a result, they lose their farms and must look for work in the cities. This aggravates unemployment, crime, and poverty.
01:33
Destruction of Native Cultures: As development moves into isolated areas, indigenous cultures can be destroyed. Local peoples are uprooted. Many suffer disease and death when their resources are polluted.
01:35
Degradation of Natural Resources: Emerging market countries often don’t have many environmental protections. Free trade leads to depletion of timber, minerals, and other natural resources. Deforestation and strip-mining reduce their jungles and fields to wastelands.
01:42
ADVANTAGES Increased Economic Growth: The U.S. International Trade Commission estimated that NAFTA could increase U.S. economic growth by 0.1%-0.5% a year.
01:42
Lower Government Spending: Many governments subsidize local industries. After the trade agreement removes subsidies, those funds can be put to better use.
01:44
More Dynamic Business Climate: Without free trade agreements, countries often protected their domestic industries and businesses. This protection often made them stagnant and non-competitive on the global market. With the protection removed, they became motivated to become true global competitors.
01:44
Foreign Direct Investment: Investors will flock to the country. This adds capital to expand local industries and boost domestic businesses. It also brings in U.S. dollars to many formerly isolated countries.
01:46
Expertise: ​ Global companies have more expertise than domestic companies to develop local resources. That's especially true in mining, oil drilling, and manufacturing. Free trade agreements allow global firms access to these business opportunities. When the multinationals partner with local firms to develop the resources , they train them on the best practices. That gives local firms access to these new methods.
01:49
Technology Transfer: Local companies also receive access to the latest technologies from their multinational partners. As local economies grow, so do job opportunities. Multi-national companies provide job training to local employees.
01:52
What could be a possible solution to the issue and why you think this could solve the problem
01:54
Major powers such as the US and the European Union push other countries to adopt their own standards of intellectual property, which have been largely written by corporate lobbies.
01:55
Effectively forbidding farmers to save seeds or reproduce fish breeds or livestock; patent computer software, to the detriment of local programmers
01:55
the creative open source movements; or clamp down on alleged piracy of popular consumer goods, even when no copyright infringement is committed
01:57
Solutions Trade protectionism is rarely the answer. High tariffs only protect domestic industries in the short term. In the long term, global corporations will hire the cheapest workers wherever they are in the world to make higher profits. A better solution than protectionism is the inclusion of regulations within trade agreements that protect against the disadvantages.