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Friday, May 20, 2016

Trans Pacific Trade Deal to Help or Harm Economy?

There has been a lot of debate over the Trans-Pacific Trade Deal and whether or not it will be helpful. Let me first say there is no clear answer as all trade deals have a give and take aspect as each country focuses on what they need. It can be said that those countries that engage in isolationist views typically don't do as well as those who willingly embrace
the market.

Consider that growing countries need access to investment capital, cheaper resources, and cutting edge technologies to succeed then creating trade deals that feed American companies with what they need will make a big difference. At least in theory, but in real life it gets more complicated as local companies must be ready to compete and city governments must have the policies enacted that help businesses grow.

The problem is that some American companies have some internal work to do before they can maximize their opportunities under new treaties. They will succeed and grow if they can get their products to the market and they will fail if foreign companies have better offerings at a better price point.

The treaty really isn't the issue. The issue is our current capabilities in terms of business and governance that will determine if this treaty will allow for maximum benefits that draws opportunities to the country or if our failure to compete will cause resources to move overseas. If we are afraid then we should get moving and start putting the American spirit to work. Treaty or no treaty we cant keep away the invisible hand of the free market forever.

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