Free Trade Agreement
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Introduce the organization/agreement.
Answer: Introduction of the agreement:
• The strong economic partnership between US and China is a result of positive political relationship.
• The bilateral agreement since 1979 includes the trade in the field of labour based goods, technology products, and soft computing solutions.
• The agreement does not include private insurance corporation, since 1989.
• United state does not support and bank lending as well as the import of different articles this agreement.
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History of the organization /agreement and objective.
Answer: History of agreement and objective:
• The trade agreement between China and US was initiated as a hegemonic and mutual suspicion over the mutual intention.
• The economic relationship was strengthened under George Washington in 1845 leading to the Treaty of Wangxia.
• During the era of 2003 to 2014, China was considered as currency manipulator. this leads to exclusion of Insurance Corporation, military resources and money lending option from the agreement.
• Since 2015 the agreement leads to a competing effect for gaining influence in Asian trade by both nation.
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Contribution of this organization to International trade and Globalizations
Answer: Contribution to international trade and globalization:
• Currently United State retains its position of being world's largest economy while China staying on second position.
• The globalization impact being reduction in price of electronic products, reduced cost of production on machinery, introduction of robotics as well as Big Data analytics.
• The major impact being on Asian market, where high level competition can be found for both US based companies and China based product.
• A significant negative impact being on increased incidence of cyber attack as well as disturbed momentum on human and cultural rights.
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Are they meeting the objectives?
Answer: • The prime intention of this economic agreement was to strengthen the business and economy of both nation by meeting the demand of each other.
• However there are increased attack as well as human right issues that leads to reduced public support mission towards this agreement.
• The agreement leads to increase the dependence of China on US dollar especially during recession period.
• US depends on China for holding the debit where as China cannot sell that beat without reducing the US dollar value that bit without reducing the US dollar value. This leads to increase the dependence of both nation on each other for mutual development.
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