Wk 2 d2 6080

Wk 2 d2 6080















Wk 2 d2 6080

Regional trade agreements are necessary to simplify trade in a global marketplace. My fashion company, located in Asia is subject to the Asia Pacific Trade Agreement (APTA), which includes China, India and Bangladesh among others (Hansen, 2013). There are rounds of talks principally organized to discuss tariff concessions among member countries. Consequently, there are three key organs that facilitate the operations of this trading block; the secretariat, the standing committee and the highest decision making organ known as the council of ministers. Similarly, there are other economic treaties in this region namely, South Asian Free Trade Area and South Pacific Regional Trade and Economic Cooperation Agreement among others as well.

Consequently, a reduction in the tariffs imposed would trigger a decrease in the exportation fee thereby making my products profitable across the region (Rugman & Verbeke, 2008). In addition, the integration among different countries has created job opportunities for citizens from various countries hence lowering the cost of labor. Such actions have tremendously cut the cost of production and led to a reduction of the retail price into one that is affordable to large sections of the population. The ease of cross border trade occasioned by these agreements has created a suitable environment for expansion because of the high demand potential present in all the member countries 9tran & Harvie, 2008). The company can thus leverage on its affiliation with APTA to lay an elaborate distribution network to capture the diverse market segments. For example, it could offer a low-cost franchising contract to attract strategic partners within the region who would then establish local branches. These would form a competitive edge and increase the brand visibility while maintaining customer loyalty. Moreover, raw materials can be sourced from other member countries, as they would be cheaper (Andersson & Andersson, 2000).


Andersson, A. E., & Andersson, D. E. (2000). Gateways to the Global Economy. Cheltenham England: E. Elgar.

Hansen, H. (2013). Food Economics. New York: Routledge.

Rugman, A. M., & Verbeke, A. (2008). A Regional Solution to the Strategy and Structure of Multinationals. European Management Journal, 26(5), 305–313.

Tran, V. H., & Harvie, C. (2008). Regional trade agreements in Asia. Cheltenham, UK: Edward Elgar.