Economic Impacts of the Multi Fibre Agreement expiration in the EU Essay

Economic Impacts of the Multi Fibre Agreement expiration in the EU Countries - Essay Example The essay focuses on the economic side of the MFA expiration, while examining the importance of international trade and the use of protectionist policies in a globalized world. The concept of aggregate demand and supply is used to measure the impact of the changes on products and factors in the textile market. The essay also considers European protectionist measures that can be taken in the nearest future. The essay presents different cases, where other forms of protectionism have been created in developed countries especially in the European Union and the gap between beneficiary and non beneficiary developing countries of the opening of the international textile market. The WTO admitted that the MFA was a special regime outside the GATT rules and that WTO members have committed to remove those quotas by 1st January 2005. Nevertheless, the MFA was not negative for all countries. The US, for example, imposed no restrictions on imports from the poorest countries like Bangladesh, benefiting to a massive expansion of the textile industry there. Since the end of the quotas, the gap between developed and developing countries is not very clear. When some could believe that the dismantling of the MFA could have been a relief and a real opportunity for Southern countries, it appears that the situation is much more complex. There is one main reason for the difficulties facing the textile market within developing countries: competition. Each of developing countries wants to be part of this profitable business. ... ist policies and we will use the concept of aggregate demand and supply to measure the impact of the changes on products and factors in the textile market. I. The consequences of the end of the MFA. 1. Among developing countries. Since the end of the quotas, the gap between developed and developing countries is not very clear. When some could believe that the dismantling of the MFA could have been a relief and a real opportunity for Southern countries, it appears that the situation is much more complex. There is one main reason for the difficulties facing the textile market within developing countries: competition. As the international market is now wide open, each developing countries wants to be part of this profitable business. However, not all of them can compete with giants like China. According to apublication from the OECD "A New World Map in Textiles and Clothing" when the MFA was still in place, smaller developing countries took advantage of the quotas because this system penalised the more competitive suppliers. When the quotas from a country like China was reached, importers turned to less competitive suppliers located in countries that had spare export quotas and whose only advantage was low wage. Today, the less competitive developing countries re not called as back up because countries willing to import textile can only be supplied by one and only exporter, the most competitive: China. As we stated before, the main issue here is competition. What separates China from other developing countries id not only the competitive advantages of low wages. In "China Shows the Way in a Quota-Free Market", Linda Lim presents six competitive advantages that China has over the other developing countries: First, Chinese workers are much more productive, probably

Difference between void contracts and voidable contracts Assignment

Difference between void contracts and voidable contracts - Assignment Example Voidable contract is a form of valid contract where all the four essential elements of a contract are present. According to Cross and Miller (2011, p. 752), a voidable contract is a contract which might be â€Å"legally avoided (canceled, or annulled) at the option of one of the parties.† In more generalized sense, the party/parties having the option to avoid the contract can avoid the contract altogether. Otherwise, they can also select which contractual duty is to be avoided. However, there is a process of ratification. If the contract is ratified by the contracting parties, then even a voidable contract will become strictly enforceable. Firstly, void contracts are itself a category of contracts. But voidable contracts are a subcategory of valid contracts. Secondly, void contracts are no contracts at all. However, voidable contracts are strictly enforceable contracts once they are ratified by the contracting parties. Thirdly, a void contract can never have all the four essential contractual elements in it. For example, if the element of consideration be missing in a contract, then that contract can be deemed as a void contract. However, this is not the case with voidable contracts. A voidable contract has all the four essential contractual elements in it 1. Suppose, A and B sign a contract on dealership of cannabis. However, selling or buying cannabis is banned in the US. So this kind of contract is a void contract since it violates law. (Schaffer, Agusti, and Earle 2008) 2. Suppose, A and B sign a contract to build a resort on an island in an active delta area. After a few days, there is a flood and the island is completely submerged under sea. Then, the contract between A and B will become void since the object of the contract cannot be achieved