Financial institutions and big corporations are expanding their services and products into globally to attain different objects and to achieve this they push to their national governments, while using various methods such as lobbying to sway the state’s officials.( Webster and Dunnin, 1990) Broadly speaking, the motives of these expansions are characterized into a four groups, firstly, ownership advantage of firms is the principle determination of their ability to maintain or increase their share of the market. Secondly, a location advantage, which sometimes results monopoly or domination to locals. Thirdly, catching up factor or compete other firm’s international market. Lastly, the general trends toward of internationalization which can be considering combinations of other influences.
In contemporary , the Trans-Pacific Partnership (TPP) is one of the largest trade agreement estimate 40 per cent world economy, it’s in between twelve countries United State, Japan, Australia, Brunei, Canada, Malaysia, Mexico, New Zealand, Peru and Singapore. The broad outline of an agreement was announced on the side-lines of the Asia-Pacific Economic Cooperation (APEC) ministerial in November 2011, in Honolulu. “Thus, The U.S and other participants’ governments describe this trade agreement as comprehensive and high standard that aims to liberalize trade in nearly all goods and services including rules based commitments beyond those currently established in the World Trade Organization which they think are loos and not enough”.
Undeniably, many people sees as monopoly and domination from industrialized countries and compromise of their sovereignty. Besides, TPP will give corporations the capacity to sue any government that opposed or restrict their product into a secret tribunal, for instance, the tobacco companies sues the UK government of endorsing plain packaging.
Despite these criticisms, the negotiation teams of the agreement describe the TPP an attainment to economic integration as a great tool to eliminate poverty and to increase the economic efficiency, similarly, encapsulate the states cooperation in peacefully as participants on one worldwide market, pursuing their interests while sharing commitment to basic human values.
Broadly, TPP will be impact differently in massive number of a population of their livelihood. According to US department Of Commerce, the total population of the TPP collision are 796,743,587 million people. and the sectors that TPP will impact are agricultural, manufacturing, intellectual property, environmental protection, trade in goods, textile, services, labour, investment, E-commerce and communication, competition policy and state-owned enterprises, small and medium enterprise – transparent, anti-corruption and regulatory coherence- customs, trade facilitation and rules of origin- Government procurement, Development and trade capacity –building.
However, TPP potentially could eliminate tariff and non-tariff barriers to trade and investment among the parties and could serve as a template for a future trade pact among Asian Pacific Economic Corporation APEC members and potentially other countries. In the meantime, the TPP agreement needs the US congress and other signature’s legislative ratification.
- Frank J. Lechner John Boli ,2008, Globalization Reader, Blackwell, Oxford UK
- Allan Webster and John H. Dunnin, 1990, Structural Change in the world economy.
- Mark A. Pollack and Gregory C. Shaffer,2001,Transatlantic Governance in the Global Economy
- by Brian Roach 2007 “Corporate Power in a Global Economy” Global Development And Environment Institute, Tufts University,pdf access 03/11/15 <http://www.ase.tufts.edu/gdae/education_materials/modules/corporate_power_in_a_global_economy.pdf >
- Kimberly Amadeo 2015, “What is TPP” access 27/10/15 <http://useconomy.about.com/od/Trade-Agreements/fl/What-Is-the-Trans-Pacific-Partnership.htm>
- TPPcoalition 2015,USA Business Coalition, access 20/10/15<http://tppcoalition.org/wp-content/uploads/2015/04/At-A-Glance.pdf>