logo image

Multinational firms Essay

Other significant reforms have been made with regard to the imports. Import tariffs have been reduced little by little, conforming to Vietnam’s WTO commitments. The tariff reduction plan forms an important step to assist the progress of the long-term planning of Vietnamese manufactures. A great number of quantitative limitations have also been removed. As a result, all domestic companies have now opportunity to import any products that are not subject to quotas. Foreign investors and private businesses are likely to experience continued growth.

2. Bad effects of WTO While WTO allows Vietnam to gain some of the benefits (in terms of access to foreign markets) in the beginning, the perceived costs (resulting from opening the Vietnamese market to foreign companies and removing tariffs barriers) may come later. WTO places the increasing demands on the country. Membership in the WTO is not free. First, independent economic state of Vietnam is cut short and short-term maneuvering in trade-related policies is opposed and also limited.

Individuals engaged in politics and interest groups who are used to behaving selfishly will take the political cost involved in ‘tying their hands’ to a serious degree. Second, there are economic costs regarding the opportunity costs of employing professionals for

Need essay sample on "Multinational firms"? We will write a custom essay sample specifically for you for only $ 13.90/page

the realization of WTO commitments and constant participation in WTO meetings. Third, a more liberal trade politics promoted by WTO membership may expose domestic firms in vulnerable economies to stronger competition with foreign firms.

Foreign firms often will be from more advanced developing member states rather than from developing countries. The consequence may be a short-term worsening of the current account. Higher imports because of market opening become invested faster than higher exports due to bettered market access in foreign countries. The external vulnerability of Vietnam may thus be intensified. Fourth, the financial costs of decreasing import tariffs may be considerable. The reason is that taxes on international transactions are a main source of government income in Vietnam.

This may be less felt by the government in the early stages of free trade when non-tariff barriers are tariffied and prohibiting tariffs are reduced in amount and imports go up. In the intermediate – to long-term stage, however, considerable reductions in average tariff rates make necessary a broadening of government’ tax base (Tran-Nam and Pham 98). Finally, there are additional costs of employing professional employees to deal with WTO matters that government of Vietnamese economy has to assess.

Experience of other countries indicates that during the GATT period, governments of member states rated these costs as extremely high.  Globalization Nowadays, Vietnam is proud to be the model for the neighbor countries and other developing nations. It has enjoyed a long period of steady development. Entry to the WTO has opened its door to the world. Vietnam now is an attractive destination for foreign investors and multinational firms. The country aims to become a modern industrial nation by 2020.

Can’t wait to take that assignment burden offyour shoulders?

Let us know what it is and we will show you how it can be done!
Sorry, but copying text is forbidden on this website. If you need this or any other sample, please register

Already on Businessays? Login here

No, thanks. I prefer suffering on my own
Sorry, but copying text is forbidden on this website. If you need this or any other sample register now and get a free access to all papers, carefully proofread and edited by our experts.
Sign in / Sign up
No, thanks. I prefer suffering on my own
Not quite the topic you need?
We would be happy to write it
Join and witness the magic
Service Open At All Times
Complete Buyer Protection
Plagiarism-Free Writing

Emily from Businessays

Hi there, would you like to get such a paper? How about receiving a customized one? Check it out https://goo.gl/chNgQy

We use cookies to give you the best experience possible. By continuing we’ll assume you’re on board with our cookie policy