U.S. trade-related government institutions, statutes, and processes - both political and regulatory - can have a significant impact on business strategy, both domestically and internationally. In addition, the implementation of major international trade agreements (such as the North American Free Trade Agreement (NAFTA) and the creation of the World Trade Organization have transformed the trading environment. Further regional integration is taking place in the Americas with the negotiation of the FTAA, in Africa with SADC and COMESA, between the US and the European Union with the Trans-Atlantic Trade and Investment Partnership (TTIP) and elsewhere with other regional agreements such as APEC and the Trans-Pacific Partnership (TPP) in the Asia-Pacific area.
Each student will select a large or small U.S. or non-U.S. company confronting a trade-related challenge from foreign competitors in its home market, or itself ready to challenge them abroad. The paper should analyze the nature of the trade-related challenge and indicate which governmental institutions and processes the firm should employ to implement its strategy. At a minimum, the paper should include:
- a brief description of the company, (size, market share, products, international exposure);
- the major trade challenge facing that company;
- the role of the government(s) and NGOs in the issue; and
- recommendations for a strategy the company can pursue which lays out the pros and cons of alternative approaches.
For example, one might analyze the impact (positive or negative) of the WTO and/or the NAFTA on that company's business. Such an analysis would address how a company might wish to take advantage of these agreements, protect itself from the detrimental effects of these agreements, or alternatively, develop a strategy for how a new round of WTO negotiations might help a company resolve an outstanding trade problem. The paper should also address how these same issues might arise in future trade negotiations.