International Trade Zone Of The European Union - 1547 Words

Introduction The word globalisation is used frequently in business and media. It is defined as â€Å"the global strategy of the integration of worldwide operations and the development of standardised products and marketing approaches† (Deresky, 2006) Hill recognised two facets of business that have emerged in globalised operations in 2014: Globalisation of Markets: where the supply of goods or services are carried out in markets other than the home nation for instance, South Korean car manufacturer Kia, selling in the U.K. market. Globalisation of Production: where materials are sourced (or assembled) outside the home market for example, US aircraft manufacturer Boeing with a Japanese fuselage assembly plant (Cullen Parboteeah, 2013). The†¦show more content†¦The following essay will discuss three topics within globalisation, namely the implications of the impasse in the Doha round of World Trade Organisation negotiations, the motives for bilateral negotiations in the Trans Pacific Partnership (TPP) and the validity of criticisms of the EU-US Transatlantic Trade and Investment Partnership (TTIP), concluding with a summary of findings. Doha Negotiations The World Trade Organisation (WTO) exists to implement trade rules amongst the nations (Robbins Coulter, 2009). Agreements are negotiated by member nations in ‘rounds’ – one being the gathering in Doha which commenced in 2001. Subjects discussed included eliminating agricultural export subsidies, reducing export barriers to developing countries, facilitating trade, combatting ‘dumping’ practices along with other topics (WTO, 2016). Negotiations were abandoned at the end of 2015 after having failed to reach agreement on many topics, risking rendering the WTO irrelevant (Donnan, 2015). The implications of such protracted negotiations, described by The Economist in 2008 as â€Å"watching paint that never dries†, threatened the credibility of the WTO, particularly in the relation to the reduction of agricultural subsidies and tariffs. These are estimated at 40% or $300 billion per annum (Hill, 2014), huge barriers for developing nations to overcome to enter markets of developed nations. This risks the perception of the talks