International Trade:

International Trade: Strategies and Opportunities

  1. A Mutual recognition agreement refers to an arrangement made among countries that are members of ASEAN with an aim of facilitating employment and free movement of certified and qualified individuals between the member states. The arrangements are established in increasing the economic integration as well as the level of trade among the member countries. Mutual recognition arrangements enhances trade because they contribute in smoothening the negotiation paths among the countries. Nursing, Engineering, accountancy and architecture would be taken as priority areas for ASEAN mutual recognition agreements because most nations have similar regulations, procedures and standards pertaining to these disciplines the skilled personnel are also limited particularly in these fields in different countries. A qualified personnel in the above disciplines can easily be adopted or employed in other country that is a member of ASEAN. Engineering, nursing and accountancy can be applied in establishing and maintain standard among the member countries. The arrangement have made progress in engineering including regional registration systems that encourage the experts to move from one country to the other. The ASEAN is making arrangement concerning the movement of natural persons from one state to the other.

b According to Hew and Denis (143-146) globalization is commonly linked to the act of trade. I think ASEAN failed include lawyers in their list of priority sector because as lawyer, economic issues and purely trade concerns may not be of critical concern to them. Globalization may affect legal profession including the structure of the business that can affect the development of laws, harmonisation of law among others.

c MRAs involves movement of people with the necessary skills from one country to the other. The program facilitate employment of individuals from one country to the other. According to Hew and Denis (117-119) technical and occupations that have limited qualified personnel is likely to be suited for the treatment under services MRAs. Some occupations such as ICT have high number of people possessing the skills in different countries and therefore not appropriate to be considered under MRA services.

2 a High changes in information and communication technology over the last decades would have enhanced production growth. This is because technology advancement plays an essential role in evaluating and communicating the production techniques that can be applied in production. Through dramatic advances made in ICT, the producers in the production networks in the country are able to get the necessary information faster therefore improving production. Welfens and Paul (34-37) state that advancement in ICT have made it possible to find and also distribute essential information quickly. In East Asia, dramatic advances made has helped in achieving sustainable production and country development. Welfens and Paul (34-37) perceptively state that dramatic advance in Information Communication and Technology contribute to increased production through provision of methods that can be applied to reduce cost of operation while maximizing on the output. Technology increases the knowledge base among producers in the country translating to improved quality and quantity of the products produced.

B advanced information and communication technology or network for trade statistics have implication in the country. Through technology advancement, the production increases bringing in additional revenues to the country. The revenues contribute to development and growth of the economy. Technology also contributes to exploitation of the resources available in the region through available information and the speed involved in disseminating the information to the producers. Welfens, Paul (56-58) record that technology advancement would lead to creation of employment opportunities therefore improving the living standards of people in the region. The technology also has an implication of increasing the knowledge base of people in the country.

  1. a Regional trade agreement seems to contradict with multilateral trading system but often, regional trade agreement can support or complement with multilateral trading system. According to Lynch and David (9-13) regional agreements have allowed different states to negotiate commitments and rules that go past what was capable of happening at multilaterally time. However, some of the commitments and rules made it through or paved ways for the agreement made in the WTO. Intellectual property, services, investment, competition and environment standard policies and standards consist of issues raised during regional negotiation and later became topics in WTO. In addition, the agreements of WTO recognize that economic integration and closer regional arrangements are beneficial or can benefit a state. In addition, regional agreement on trade enhances agreements in services pertaining to economic integration. Similarly, WTO agreements permits developing nations to enter into global and regional agreements including elimination or reduction of barriers on trade.
  2. standards of basing judgement

Legal standards. Lynch and David (54-55) perceptively states that some standards used in basing judgement are primarily legal. For example, GATT article calls for regional trade agreement to cover all the trade substantially.

Institutional standards. The policies usually highlight the likely discrepancies between WTO’s rules agreements and regional agreements.

Economic dimension.  The most important standard is economic dimension. Today, the policy goes beyond the impacts of preference of tariff on both non-members and members of regional agreement

  1. Essential elements or provisions may include investment where all the regional projects would have an essential focus on growth and development of trade agreement. Another provision is consumer protection and competition policy where the objective if the trade includes addressing matters pertaining competition policy and mutual trust. Regulatory convergence and coherence is also an element that involves phytosanitary and sanitary measures. They are characterised as WTO plus because they encourage globalization and facilitate trade growth.

4 Research by Edakunni, Narayanan and Sethu Vijayakumar (41-52) indicates that in the NAFTA origin model, the test that is established for a good specific rules has an extra component pertaining to change in tariff requirement. There exist no specific rules to a product that is solely based on the ad-valorem criterion in the model. When a non-originating material that is used in production process does not change phase in the classification of tariff, the general provision requires a value added test: for the unassembled goods that are classified as assembled and when the heading for the product encompasses both the parts and the product itself. The rule of origin have a commitment that only the originating goods will receive lower TPP. Originating goods are wholly produced or obtained, goods that are exclusively produced from TPP materials and depending on the specific rules of the product.

  1. RVC= (value of FOB-value of the non-originating materials)/value of FOB*100

FOB value=$10

Value of non-originating materials= $5.60+$3.75


Therefore, RVC= ($10-$9.35)/10*100



Table knives are not originating good under the RVC rule. This is because the materials used to manufacture the table knives in Singapore are not exclusively from TPP materials. Metal handles and blades are imported products. The RVC for knives is below the ROO for good of 8211.91 that is 40.

  1. FOB value=$200

Value of non-originating materials=$100+$28


Therefore, RVC= ($200-$128)/200*100



Microwave ovens are not originating goods under the RVC rule. The ROO for microwaves is RVC (40). After calculation, the RVC obtained is 36 which is below than the ROO for goods of 8516.5.

Works Cited

Edakunni, Narayanan U, and Sethu Vijayakumar. Bayesian Locally Weighted Online Learning. N.p., 2010. Print

Hew, Denis. Brick by Brick: The Building of an Asean Economic Community. Canberra: Asia Pacific P, Australian National U, 2007. Print.

Lynch, David A. Trade and Globalization: An Introduction to Regional Trade Agreements. Lanham: Rowman & Littlefield, 2010. Print.

Welfens, Paul J. J. Clusters in Automotive and Information & Communication Technology: Innovation, Multinationalization and Networking Dynamics. Berlin: Springer, 2012. Print.


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