Week 1 Discussion

Global Trade I

Global trade is affected by social, political, and economic conditions. There are a multitude of reasons for a corporation to outsource, create a cross-border joint venture, or decide on offshoring. The leaders of the organization are tasked with making many decisions about the future of their corporation. The WTO is at the forefront of the rules that govern trade between nations.

According to Vance and Paik (2015):

Besides their membership in intergovernmental organizations, governments individually and collectively (through bilateral and multilateral agreements and regular meetings) have a central role in regulating economic activity and can exert tremendous in�uence on workforce management practices. We now examine these individual and collective forms of government in�uence. (p. 11)

Individual Governments: A key purpose of government is to secure and protect the well-being of its citizens, including their economic livelihood.

Multilateral Agreements: Beyond the in�uence of a single government, two or more governments commonly form agreements and treaties that serve to promote cross-border commerce and economic development for all governments involved.

The North American Free Trade Agreement (NAFTA)

The Association of South East Asian Nations (ASEAN) Free Trade Area (AFTA)

The Mercado Común del Sur (MERCOSUR, the Southern common market, involving Argentina, Brazil, Uruguay, and Paraguay, as well as other South American countries, as associate members)

The European Union (EU), which is the most integrated multilateral agreement between governments, with an extensive governing and regulatory structure affecting organizations in all EU current and prospective member countries as well as companies doing business within this huge economic bloc

All of these multilateral agreements have increased trade across borders with accompanying workforce implications (Vance & Paik, 2015, p. 12).

Bene�ts of International Trade Agreements Review each tab to learn more.

Additional Materials

From your course textbook, Managing a Global Workforce: Challenges and Opportunities in International Human Resources Management, read the following chapters:

Introduction and Overview

Cultural Foundations of International Human Resource Management

From the South University Online Library, read the following articles:

The World Trade Organization and the Future of Multilateralism (https://www.thecampuscommon.com/library/ezproxy/ticketdemocs.asp? sch=suo&turl=http://search.ebscohost.com.southuniversity.libproxy.edmc.edu/login.aspx? direct=true&db=bth&AN=112712433&site=eds-live)

Reaping and Sharing the Bene�ts of Global Trade (https://www.thecampuscommon.com/library/ezproxy/ticketdemocs.asp? sch=suo&turl=http://search.ebscohost.com.southuniversity.libproxy.edmc.edu/login.aspx? direct=true&db=fsr&AN=128591950&site=eds-live)

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