Cooperate Power Issues - Essay Example

For instance, the recent trade agreement between the United States, Panama, Colombia, and South Korea allows the member state corporations to treat each other equally.

Though World Trade Organization and other trade agreements do not fully offer free trade, corporations have furthered their interests through the lowered trade barriers between trading nations. Trade agreements lower trade barriers such as customs duty, excise duty, quotas, and import bans which open markets to corporations. Arguably, this results in increased production as these corporations will focus on what they produce best (Hoekman et al, 2002). Needless to say, lowered trade barriers allow corporations to increase their trading activities, which results in increased incomes. In addition, World Trade Organization and trade agreements reduce the costs of production which may trigger increased profits for the corporations thus furthering their interests. Debatably, the removal of trade barriers increases the level of cheap imports used in production resulting in abridged costs of production.

World Trade Organization and other trade agreements offer business protection and incentives. In this regard, corporations use business incentives, and protection such as defending logical property rights offered by World Trade Organization and other trade agreements (Hoekman et al, 2002). This assists corporations in attaining and furthering their interests. The recent trade agreement between the United States, Panama, Colombia, and South Korea protects intellectual property rights and environmental standards allowing the corporations in the different states to further their interests.

World Trade Organization and other trading agreements offer enterprises an apparent view of their future opportunities (Hoekman et al, 2002). This is because trade agreements assure member states that the trade barriers will not be raised offering corporations predictability. This encourages corporations to invest to further their interests.