Article Critique

Posted by Winnie Melda on November 14th, 2018

Perera, P. (2015). Influence of International Trade Agreements on International Business: A Conceptual Model. Journal Of East-West Business, 21(3), 205-232. doi:10.1080/10669868.2015.1021434

The author is presenting a conceptual model that has been developed after the assessment of more than 50 trade agreements. The scholars conduct an assessment of the impact that the trade agreements that encompass the free trade agreements, customs union, preferential agreements as well as the regional trade agreements have on the foreign market entry strategies. The model makes an attempt towards the development of an international business theory that is going to address the current research gap about the narrow and consequently important allied topic (Perera, 2015).

The author’s viewpoint is that there is a firm connection between the trade agreements and international business, with the trade agreements found to impact the regulative environment of the participating countries. The impacts these attributes have conversely reduced the regulative distance that exists between the members nations (Perera, 2015).

It was found that the regulative environment has a higher impact compared to the cognitive as well as normative environments. The fact that the regulation, as well as elimination of tariff, is a major regulatory element of any trade agreements, it is fair that companies, as well as industry bodies, consider that huge impact that trade agreements have in the context of the participating countries regulatory environment. In this case, the regulations are being changed and modified to attain superior overlap, better alignment with the country they engage in the trade. The majority of the respondents considered trade agreements being the norm of business. It is additionally found as imperative for the survival of businesses. The additional attribute that supports the author’s position relates to the cognitive environment whereby the trade agreements exert psychological confidence in undertaking the business with the partner country (Perera, 2015).

The presentation of the arguments by the author very effective in that the points that are illustrated flow in a coherent manner that any reader can follow. These arguments follow a logical consistency, with the writer indicating minimal assumptions that could imply biases. The logical consistency of the points that the author presents in the article follow a structure that makes it easy for the reader to associate the points in the order they are presented. The attributes additionally make it easy to remember the points as the author uses the previous point to build on the new one that they address in the article.

The article relates to the ongoing issues of promoting the international trade in the sense that one of the issues that inhibit the success of international trade relates to the poor development of these agreements. The fact that there is no underlying work on the manner in which the trade agreements impact the international trade implies that this article is very important to the development of the WTO and promoting the effectiveness of the transactions between the member states.  One of the issues that I have noticed is that the effective development of trade agreements between states promotes their trade as there are minimal factors that hinder their operations. International executives regard this article as very resourceful as it develops the theory applied in the assessment the impact that trade agreements have on international trade. The development of this theory implies that there will be successful development of trade agreements that will promote the trade between these parties.

The article is very significant in matters to do with globalization and international business as it develops the foundational precepts that these businesses rely on in developing their trade partnerships. The issues that are included in the trade agreements encompass the removal of trade barrier as customs, an attribute that promotes the interactions between trade countries.

Reference

Perera, P. (2015). Influence of International Trade Agreements on International Business: A Conceptual Model. Journal Of East-West Business, 21(3), 205-232. doi:10.1080/10669868.2015.1021434

Sherry Roberts is the author of this paper. A senior editor at MeldaResearch.Com in legitimate paper writing services if you need a similar paper you can place your order for custom college essay services.