11 9月 悉尼代写-自由贸易协定的部分缺点
FTA agreements are determined only by the individual trade agreement. There can be loss of IPR because of terms of the contractual agreement. Hence individual contractual treaties need to be manoeuvred to ensure that there is no loss of IPR during the course of operation. There are number of factors that need to be considered when formulating the actual treaties. Hence the companies should be aware of the pitfalls and form agreement that is suitable for their business objectives.
Governments should also aid in the process of protecting the individual companies and business ventures. It should be noted that this process should aid the entire stakeholder and not affect any one stakeholder. The growth should be proportionate.
In this process there is increase in the competition. There is crowding of the competition for the same consumer base. This leads to increase in competition, threats of substitution and leads to diminished sales figure (Saggi, and Yildiz, 2011). This leads to issue of sustenance of the local companies. Commercial enterprises will start to face negative cash flow if they do not follow the prerequisite of innovation.
Indigenous commercial ventures in an attempt to increase sales start to mimic international protocols of sales. In this process of commercialization, companies start to lose the intrinsic values and comparative advantage (McMichael, 2001). This leads to increase in production cost and unknowingly bring in more competition. There is loss of culture and also loss of indigenous comparative advantageous practices for the companies.
Owing to the immense brand equity companies can lose their competitive advantage. Local enterprises will be destroyed in the process of foreign enterprises that have positive brand image in the targeted consumer base. This cause all round issues for the sustenance of the commercial enterprises. The local enterprises need to develop more brand images and also produce innovative products on a continual basis or else they will be fazed out eventually (Ong, 2003). In some instances the sheer volume of the foreign company will be larger, which local companies cannot compete with the rising levels of competition. These commercial ventures that are smaller and medium in size will lead to being phased out eventually without providing a level playing field.
Hence the commercial ventures that invest in the local communities should be aware of this ideology and find ways to work in cohorts with the local commercial enterprises. In This process all the stakeholders involved will be benefitted.