Thursday, August 20, 2015

When Free Trade Agreements can Help San Diego's Economy Bear Fruit

Trade Deals can be or not be beneficial depending on their design and the economic environment in which they are enacted. An article entitled Trans-Pacific trade pact benefits San Diego by Jerry Sanders in San Diego Union-Tribune does a pretty good job outlining the benefits of a trade deal and its potential impact on the San Diego Economy. The level benefits of any trade agreement rests on a few things that San Diego must have to maximize its opportunities 

When Businesses Crave Access to New Markets: Local businesses must want new markets. Opening up the international market affords an opportunity to sell more products, create more revenue, expand operations and hire more people. There must be a growing need to find new markets. 

When We are More Competitive than Other Locations: One of the reasons why countries use tariffs is to protect their weaker businesses and encourage them to grow to a competitive positions. China is great at this. If San Diego Business are developed, can produce a market-driven product, and have a working business model they can compete on the international market.

When We Need Access to New Resources: Innovation produces new products that need cheaper resources for mass production. Trade agreements can provide access to new resources at prices not found locally therefore making the products more competitive. Growing countries need resources to feed their business expansion plans.

 When the Agreement is a Net Plus for the Economy: The numbers are important in this case. Economics and number crunchers will need to determine whether or not we will expand or shrink our economy under an agreement. Some places will be losers while others will be winners.

When Local Technology and Skills are High: If locals have unique skills that have demand on the international market and access to the technology to produce the next generation products such trade agreements make sense. The area itself must be competitive and unique when compared to other places.

When Local Universities Draw Talent and Innovation: Local universities draw talent and innovation from other places. Graduates settle in the area when jobs are plentiful further feeding intellectual capital needs. Universities create new products and ideas for market consumption.

When Investment Will Match New Opportunities: When the market shifts due to new trade agreements it is an opportune time for hubs to market their investment opportunities. New resources, expansion, and new intellectual knowledge draws new investments. Investment sources should be expanded.

When Local Government Can Manage to an International Community: Local government and its effectiveness in understanding and managing across genders, races, origins, and localities depends on its developmental level. Government includes policing, services, policies and the intellectual abilities of people in power. Diverse populations and people from other places will want to trust the government to be fair and transparent in decisions and the information leading to those decisions.

When the Business Community Can Work Together: When the local business community can work together to maximize their opportunities and expand the economic engine. This includes marketing the area, partnership in government, encouraging investments, pushing for pro-business policies, and better management of the region.

No comments:

Post a Comment