Trans Pacific Partnership (Tpp) Essays Examples

Trans-Pacific Partnership (TPP) is a private multinational trade agreement that impends to encompass restrictive intellectual property (IP) laws across the sphere and amend international rules on its implementation. There are two main problems of the TPP such as intellectual property chapter; the agreement draft was leaked and showed that IP section would have broad negatives implications to users. The ramifications for user were such as the right to privacy and due process, freedom of speech and hindered people’s ability to innovate. Then lack of transparency; the entire development has stopped the multi-stakeholders participation, and it was masked in secrecy. The TPP involved twelve nations like Japan, US, Peru, Australia, Vietnam, Malaysia, Chile, New Zealand, Canada, Mexico, Singapore and Brunei Darussalam.
H-O theory analyzes the consequences of TPP in trading nations. First, there is a difference among countries involved in international trade in terms of factor of abundance. Maybe one of the countries requires being labor abundant, and the other country wants being rich in capital. Second, commodities are categorized in terms of factor intensity. There will be no possibility of factor intensity reversal because one commodity is labor intensive the other product is capital intensive. Third, the countries to be involved are assumed to have identical demand conditions, and they have persistently perfect competitions. Also, the production is carried out as per constant return to scale (CRS) function of production. In addition, free trade open trade policy is followed in both the countries engaging in the trade.
According to the Stolper-Samuelson theorem, trans-, changes in tariffs and also affects the price factor of production. Assuming all constant returns to scale and perfect competition, an increase in the comparative price of goods and services will lead to a rise in exchange to that factor of production. Also, what is being used intensively in the production of that good and a decrease in return to the other factor of production and that is being less intensively being used.