TPP (Trans-Pacific Partnership)

I would like to introduce about TPP (Trans-Pacific Partnership) as own example because this is a big current problem about tariff. Brunei, Chile, New Zealand, Singapore Australia, Malaysia, Peru, United States, Vietnam join the regional trading blocs. In addition, Canada, Mexico, Japan, the Philippines, South Korea, and Taiwan have also expressed interest in TPP membership. TPP is a multilateral free trade agreement that aims to further liberalize the economies of the Asia-Pacific region.

However, according to the opinion of United States, this is still pending problem because if some countries like Japan, China which is an export powerhouse, and South Korea don’t make it clear to join this group, United States will not be able to get a profit. It means this discussion is stuck. These countries cannot make a decision about it easily.

In the case of China, over 400 of the Fortune 500 Global companies are operating in China and China’s vast population of low-wage workers and massive consumer market potential has attracted offshoring of manufacturing from companies around the world. United States relies on China for the exports of its goods. On the other hand, China is still afraid of invasion of American companies when they join TPP.

The following is Japan, Japan will lose domestic farmer because Chinese reasonable agricultural product and human capital will replace as Japanese ones. This case will bring about decreasing self-sufficiency ratio for Japanese product and Japan will not be able to control own country.

Global managers have to consider the future of tariff problem otherwise they will be suffered from foreign company’s brand new strategy and roles. Especially, China has a great battle ground for companies. Many foreign companies would gather in there to take opportunities. Global managers must consider so many aspects of marketing decisions.

Especially, one of these aspects is like the speed and accuracy of information transmission. These are changing the nature of global manager's job by making geographic barriers less relevant. For example, Intel succeeds in Vietnam's business because of their high-technology. Globalization is indispensable to informatization, I think.