StudentShare
Contact Us
Sign In / Sign Up for FREE
Search
Go to advanced search...
Free

Bilateral Trade Agreement - Essay Example

Cite this document
Summary
In the essay “Bilateral Trade Agreement” the author discusses the issue when the United States and Vietnam signed a Bilateral Trade Agreement which allowed the two countries in the year 2001 which allowed the overall relations between the two countries to improve and was considered a milestone by many…
Download full paper File format: .doc, available for editing
GRAB THE BEST PAPER95% of users find it useful
Bilateral Trade Agreement
Read Text Preview

Extract of sample "Bilateral Trade Agreement"

Therefore, any recessionary activity would have a great impact on Hong Kong's trade activity and its exports particularly. b) The Hong Kong currency has been pegged to the United States dollar in the year 1939 and since then the currency has been pegged in this manner.

It was done so in order to maintain a policy-defined relationship between the domestic currency and the foreign currency. However, the current recession has affected the Hong Kong currency in a deep manner due to this pegged currency as the country has had to sell a total of 7.8 billion Hong Kong dollars in order to maintain the peg. As a result, the monetary authorities have been seeking ways in order to remove this pegged relationship as it has been undermining the domestic currency. Even the recent rise in Hong Kong's dollar has been due to the speculators betting on the revaluation.

The Hong Kong government has had to intervene quite a lot in the recent past in order to maintain the peg by injecting huge amounts of the Hong Kong dollar. The pressure has been felt by the local economy in terms of local inflation and asset inflation which has created problems for the domestic economy. Therefore, the constant maintenance of the pegged rate is only worsening the situation for the domestic economy and hence, it would be beneficial to remove this method of maintaining a relationship between two nations. c) There are a number of measures that would have to be adopted by Vietnam in the near future for the betterment of its economy.

It needs to control the inflation level while at the same time tackling the downward pressure on the currency. The GDP forecasted is amounted to be 6.9 percent which is actually down from the previous value of 7.3 percent of last year. The reasons for this have been the smaller levels of credit expansion and the lower level of consumption growth. Inflation is estimated to be around 23.3 percent while the dong is expected to depreciate slightly in 2008. The current account deficit will be expected to remain negative as well which shows an overall bleak picture of the forecasted economy.

Read More
Cite this document
  • APA
  • MLA
  • CHICAGO
(Bilateral Trade Agreement Essay Example | Topics and Well Written Essays - 750 words, n.d.)
Bilateral Trade Agreement Essay Example | Topics and Well Written Essays - 750 words. https://studentshare.org/politics/1525728-trade-relationship-between-hong-kong-and-united-states
(Bilateral Trade Agreement Essay Example | Topics and Well Written Essays - 750 Words)
Bilateral Trade Agreement Essay Example | Topics and Well Written Essays - 750 Words. https://studentshare.org/politics/1525728-trade-relationship-between-hong-kong-and-united-states.
“Bilateral Trade Agreement Essay Example | Topics and Well Written Essays - 750 Words”. https://studentshare.org/politics/1525728-trade-relationship-between-hong-kong-and-united-states.
  • Cited: 0 times

CHECK THESE SAMPLES OF Bilateral Trade Agreement

The Effect of Bilateral Trade Agreement on Vietnamese Firms

hellip; The signing of the BTA resulted in a significant increase in the value of Vietnamese exports to the USA during the years following the agreement.... On 13 July 2000, the country signed a BTA with the USA: the agreement went into effect on 10 December 2001.... This agreement was part of the ongoing economic reform process in Vietnam and contributed significantly towards the country gaining membership in the World Trade Organization.... In 2007, the US Congress approved a Permanent Normal Trade Relations (PNTR) agreement with Vietnam....
15 Pages (3750 words) Research Proposal

Current Events and U.S. Diplomacy

For instance, a Bilateral Trade Agreement was signed in 2000.... Further still, Vietnam was included in the World trade Organization at the start of 2006 (Levy, 2004).... Current Events and U.... .... Diplomacy Name Institution Among the longest wars in history, the Afghanistan War, popularly known as Afghan War was instigated after U....
4 Pages (1000 words) Research Paper

Chinas Economy

China's Economy ... hina's Economy China has achieved a miraculous economic growth, which has ensured that the country enjoys economic dominance and might surpass the United States.... hellip; China's Economy ... hina's Economy China has achieved a miraculous economic growth, which has ensured that the country enjoys economic dominance and might surpass the United States....
3 Pages (750 words) Assignment

Bilateral Trade Agreements

In the paper “Bilateral Trade Agreements” the author focuses on a trade agreement between any two countries, usually in order to reduce tariffs and quotas on items traded between themselves.... In recent years, there is an observed rise in the number of bilateral trade agreements between countries.... On the part of the smaller countries, bilateral trade agreements increase the local employment and provide a better climate for investors from the powerful nations....
3 Pages (750 words) Assignment

Contradictions in International Trade

This paper makes insight to trade and its origin and how it evolved to a system that surrounds multilateral and bilateral trade agreements and policies in general.... hellip; By making a comparative analysis and determining each pros and cons from the underlying sources, we can analyse whether there is an inherent contradictions between a multilateral and bilateral trade agreements generally speaking. ... During the war 44 nations signed the Bretton Woods agreement, which was made to avoid national trade...
18 Pages (4500 words) Essay

International Trade - Exporting and Importing

Chile has signed Bilateral Trade Agreement with the USA, Singapore and Jordan, this trade agreement encourages trade between USA and Chile, tractors can hence be exported to Chile with ease and the manufacturer can succeed in exporting tractors to this country.... If two countries sign Bilateral Trade Agreement then exporting and importing goods becomes relatively easy due to reduction of barriers and excessive import tax.... The free trade agreement between the USA and Thailand have not yet materialized hence the tractor exporter may have difficulties exporting to this country....
5 Pages (1250 words) Essay

Financial Instruments and Banking System of Vietnam

The Bilateral Trade Agreement 11 8.... World Trade Organization agreement 8 8.... Analysis and findings 7 8....
36 Pages (9000 words) Essay

Amway - Feasibility Study for the Entry in the Vietnamese Market

With the new open door policy of the Vietnamese Government, as well as its Bilateral Trade Agreement with the US, there is much greater scope for Amway to successfully establish its distributor network in Vietnam.... The study “Amway - Feasibility Study for the Entry in the Vietnamese Market» considers it appropriate for the American brand in order to minimize the risk of failure, to introduce its certain products step by step, reacting flexibly to the conduct of the specific target audience....
25 Pages (6250 words) Research Paper
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Contact Us