International Business Practice Assignment Example | Topics and Well Written Essays - 2500 words

International Business Practice - Assignment Example Trade creation occurs when domestic production is substituted with imports from member states; sometimes it entails the condition of a less efficient system, albeit there is reduction in trade transaction costs. However, trade diversion occurs when it is carried out with member states. Whereas, earlier, trade was being carried out with other countries outside the Union. The portion of trade that was carried out with other countries or states is now diverted to member states under preferential trade agreements and due to this, trade diversion occurs. There are several reasons why countries resort to signing PTA; the main reasons are as follows: The underlying influence of Europe: The shift of the American Position Unbalanced nature of current multilateral trade regime and utmost dissatisfaction with it. Besides modern trade barriers are much more complicated in multilateral settings and most countries find it easier to deal with regional or sectoral trade. Failure of the World Trade O rganization (WTO) to become a major stabilizing force in global trade It is now necessary to consider each of these aspects individually and separately. The underlying influence of Europe: The influence of the European Community (EC) now known as the European Union has indeed been formidable. Although it faced several setbacks during 1992, it was successful in overcoming mighty odds in its search for regional trade co-operation The EU has been able to achieve despite the challenges it had to face, a major expansion of the European community, in terms of scope, depth and geographical coverage. â€Å"This success has undoubtedly had a demonstration effect, encouraging emulation in the form of regional initiatives in other parts of the world† (Frankel, 1977, P.5). The influence of the EU on setting up of several regional PTAs has indeed been reassuring, especially in the case of PTAs like the European Free Trade Association, (EFTA), Andean Group, Mercosur and ASEAN. The shift of the American Position: With Europe entering into progressive trade unionism ostensibly to avoid the prospects of further wars, America now needed to adopt a stance of its own, although without confronting the EC plans. It turned towards geo-political solutions and â€Å"proposing a new round of liberalization negotiations in the GATT so as to keep the momentum in the multilateral direction.† (Frankel, 1977, P.5). Since then American policies have shifted from multilateralism to regional trade partnership, which is quite evident from the US -Israel Free trade agreement and the Caribbean Basin initiative. â€Å"Where the Americans had previously reacted multilaterally to European action on the regional front, now they reacted regionally to European Action on the multilateral front† (Frankel, 1977, P.5). The American policies were clear cut and transparent – if the multilateral routes were closed, they were ready to explore regional routes for trade development an d believed that the breakdown of such barriers was essential for trade to flourish. There were several factors that contributed to the US trade policy. The first being that over the few decades, the US had lost global hegemony it had enjoyed since World War II, and its trade position has slipped down alarmingly in recent years. Secondly, the EU has been a strong economic and trade force in Europe and has matched US supremacy. Under such circumstances, the

King Philip II of Spain Essay Example | Topics and Well Written Essays - 1500 words

King Philip II of Spain - Essay Example Unlike his father Philip II was not interested in war and avoided wars and paid less attention to enhancing his own greatness than to deter that of others. King Philip II usually followed the opinion of others. King Philip II considered that Spaniards superior to the nation. He believed that he lived among the Spaniards and he should consult them and they should direct his policies. He considered the Spaniards above all the others that he ruled, that is, the Flemish, the Italians and the Germans. He would give them positions only in the military, in the hope that he could prevent his enemies from using them. Born in 1527 Phillip II became the king of Spain in 1556, he died in 1598. He governed Spain in her Golden Age. However during his rule Spain went through an economic crunch. Spain's bankruptcy continued for a decade from 1588 to 1598. Inclusive of the disaster of the Spanish Armada. Philip II had a good taste for music and art and considered him self a traditional Spanish man. He also loved collecting master pieces and his collection was at his palace outside Madrid which was called Escorial. Philip II was an educated man but however he was weak at languages but good at Politics and History. He also collected art works and rare books. He was a very religious man and his rooms at his palace were Spartan which contained very less furniture. Philip II was married four times to Maria Manuela of Portugal, Mary Tudor of England, Elizabeth of Valois and Anne of Austria respectively. Philip had a major problem of not trusting his own judgments and also relied on the advice of others. He al so mistrusted the advice of his advisors. Due to this any issues took a very long time to be decided upon. It is believed he had a persistent lack of self confidence. "Your majesty spends so long considering your undertakings that when the moment to perform them comes the occasion has passed and the money has been spent"(Maran, 1954, p. 17). Long term policies could be cultured to achieve long term results as a result of him taking time to make important decisions. He wanted to 'Castilise' Spain which resulted in the most important government positions going to Castilians. Philip strongly believed that the right of the kings was divine and believed that kings were appointed by god and he as a king was also appointed by god so he could never makes any mistakes as god could not make mistakes. King Philip II settled down in the Netherlands during the early years of his reign. In 1559 he returned to the peninsula and never left the peninsula again. King Philip II was a native Spanish speaker and he decided to rule from Spain rather than travel around to his different states. Though, King Philip II was sometimes described as a monarch, he faced many constitutional limitations on his power. Spain was considered a coalition of many separate territories. It wasn't a single monarchy with one legal system. Precedence was usually taken over King Philip's authority by the local assemblies. The word of the local Lords was considered more effective than the King's own word. He also struggled with the issue of the Morisco population in Spain, who were forced to convert to Christianity by his ancestors. When the Morico Revolt broke out in 1568 in response to the attempts to restrain Moorish customs, King Philip ordered the distribution of Moricos onto other states after their