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November 5, 2020

April 14, 2017

FTAs and NAFTA


The history of trade is that two or more parties enter into agreement to exchange goods or resources exclusively within their respective territories of negotiated values. It happened the World over as exploration expanded the reach of humanity. The purpose and usage of the traded resources was not discussed but was intrinsic to valuations placed upon the resources exchanged. Also, of importance, is the stage of development of the societal communities engaged in trade partnership. Industrial developed societies were trading for raw materials to supply manufacturing while their trading partners were farmers and tribesmen that thrived from livestock and agriculture. The result was strip mining of territories for commodities such as precious metals, oil & gas, gems, etc. in exchange for livestock and developed economy coinage (money).

Trade balances (surplus and deficit) result from a multivariate dependence of development levels of trading countries, among other things. While one country conducts trade in manufactured goods, its partner may be trading livestock or even the labor of it citizens to manufacture goods with a lesser expense of capital. The NAFTA agreement is an example of the creation of a three country trading bloc establishing a North American marketplace where corporations, to take advantage of the variances, created business strategies to break up the manufacturing process for a comparatively lower wage labor in Mexico. The strategy also gets reflected in the Foreign Direct Investment comparisons between Mexico and the United States and Canada. Politics recognize the foreign direct investment in Mexico as the United States’ lost opportunity to create jobs for its citizens. However, no evidence supports the fact that the FDI in Mexico would take place in the United States absent NAFTA. This leads to the geopolitics of renegotiating trade agreements for better job creation and location of the creation.

The Congressional Research Service published a NAFTA report authored by M. Angeles Villarreal and Ian F. Fergusson summarizing NAFTA and its impact along with possible renegotiations. Potential topics include:

Automotive sector – rules of origin

Services – removal of barriers to electronic payment card services, electronic signatures, mobile telecommunications, international roaming rates, and additional market access in areas such as audiovisual services.

E-Commerce, Data Flows, and Data Localization – cross-border transfer of information by electronic means or forced localization of data centers.

Intellectual Property Rights (IPR) – consideration for expanded provisions related to widespread use of the Internet on copyright in the digital environment.

State Owned Enterprises (SOEs)- addressing potential commercial disadvantages to private sector firms from state supported competitors receiving preferential treatment.

Investment – NAFTA was the first FTA to contain investor-state dispute settlement (ISDS) provision, which allows investors to bring arbitration against a host government to binding arbitration to resolve disputes over alleged violations of a host government’s investment obligations.

Dispute Settlement – a binational dispute settlement mechanism to review anti-dumping (AD) and countervailing duty (CVD) decisions of a domestic administrative body.

Labor – strengthening provisions related to the protection of worker rights.

Environment – hold parties to more enforceable environmental provisions such as those that require parties to adopt, enforce and not derogate from their environmental laws to attract trade and investment.

Energy – The United States may seek greater access to Mexico’s oil sector or to enhance bilateral cooperation on energy production and security.

Customs and Trade Facilitation – Discussions could address customs automation procedures, the creation of a single-access window at one entry point for importers and exporters.

Sanitary and Phytosanitary Standards (SPS) – considerations such as science-based and transparent regulatory activities, including the use of risk analysis to improve the scientific basis of SPS regulation, notification to importers or exporters of shipments detained for SPS issues, or consultative mechanisms to seek quick resolution of such detentions.

As evidenced by the topics and renegotiation summaries, a major alteration of NAFTA is not likely. What is likely is a tightening of the trading bloc integration to create a more seamless marketplace similar to the European Union and the economic political developments of China – Asia. 

March 6, 2017

R&D Spending Around the Globe


Organization for Economic Co-operation and Development (OECD) has a 35 nation membership and provides economic analysis and guidance in an effort to sustain open democratic governance with a mission to promote policies that will improve economic and social well-being of people around the world. This analysis of R&D spending is one of the many reports issued by OECD and reflects country spending relative to GDP which provides an indicator of future technological development within society. The associated national wealth is measured through patents and patent protections for development of the technological breakthroughs for ownership claims of corporate and industry developments for expansive application around the world. Included is the use of military R&D for national defense which can have application within social technology usage and country business systems.

The analysis measurement is R&D spending as a percent of GDP and although other nations may have a higher spending rate than the United States, the United States still spends more on a dollar basis due to the larger economy.
"The United States, which spends more than any other country on R&D and accounts for around 40% of total OECD R&D expenditure, saw its R&D intensity rise slightly from 2.76% in 2014 to 2.79% in 2015. Meanwhile, China continued its steady increase in R&D intensity, reaching 2.1% in 2015 – only 0.3 of a percentage point below the OECD average. In volume terms, China’s R&D spending was equivalent to 81% of the United States level in 2015 and 9% higher than that of the EU. The latest patent data show the number of patents filed by Chinese inventors continued to rise in 2014, while filings under the Patent Cooperation Treaty by United States inventors declined."


February 22, 2017

Planetary Discoveries

One tends to think about planetary governance systems in conjunction with these new discoveries. The democratic and capitalist society tends to work, but it has vulnerabilities such as wealth distribution inequalities and certain discriminatory behaviors impacting quality of life for certain groups. What really comes to mind is whether the system is duplicable and transferable for interplanetary governance?

https://www.nasa.gov/press-release/nasa-telescope-reveals-largest-batch-of-earth-size-habitable-zone-planets-around


January 18, 2017

Democracy for Sale


The implication of the conflicts of interest from the elected - Executive branch maintaining private sector business interests while politically leading the country is the United States becoming more alike the non-democratic countries that the U.S. is trying to influence with Democratic principles of governance. International politics have shown the regional differences in governance systems whereby “family” royalty governance models accumulate resource wealth of a country while their populations struggle in poverty for basic standards of living. In such cases capital wealth accumulates within a small percentage of the population that then attempts to protect such wealth through distribution management. The impact limits the expanse of economic development among the population necessary for a vibrant social development and tax base to support public services.

The attempts to lead the country through the executive branch of government while maintaining private sector business interests create opportunities for non-democratic business norms of “pay to play” accusations where payoffs for favorable policy and regulatory practices to enhance certain industry dynamics of benefit to “family” oligopolies. In such environments, Capitalism is reduced to the exchange of financial capital using industry for wealth accumulation as opposed to constructing social developments. The effect also destroys the network of sanctions designed to support the building of Democratic norms where countries' economic resources are used to further “family” royalty wealth in lieu of building democratic institutions managing society for the betterment of mankind. At risk is the moral authority used by the United States to protect mankind for political influence within international affairs otherwise the Executive Branch of government is viewed as just another oligopolistic business family directing international politics.


The United States economy is also at risk in the current environment of international supply chains supporting American business within a multitude of foreign countries from the arrangement of international trade agreements. Because many of these countries lack all of the democratic institutions of governance, American corporate leaders are negotiating deals with foreign government entities for development of their countries in exchange for resources included in the manufacturing supply chain. Disruptions within any part of the supply chain impacts the availability of goods which impacts corporate earnings which in turn impacts stock prices which impacts corporate leadership compensation and tenure.  Actions creating the Executive Branch conundrum by acting as a CEO instead of leader of a Democracy dependent upon the international recognition of Moral persuasion in international affairs as well as domestic leadership of government.

December 2, 2016

November 14, 2016

Tech and Television


Much of the current Silicon Valley M&A activity is the related to the digitization of Industrial America with social interactivity. The developments are creating new segments within industry including distribution channels. This digital segmentation is also creating pricing opportunities in response to financial earnings pressures and future value. Television is where the M&A caused disorder is most evitable. Technology has enhanced media content and digital has created multiple avenues to distribute content against existing broadcast systems. From traditional broadcast TV to cable TV to satellite TV to wifi video streaming, digital segmentation is making video content available for all customer viewing experiences of technology usage: the desktop PC, laptops, tablets, phones, television, and other mobility devices.

Telecoms traditionally are primed to focus on digital platform system traffic categorized as talk, text and data. M&A activity such as Verizon + Yahoo and AT&T + Direct TV + Time Warner are varied examples of data strategies of content focus. Verizon targeting social media communications of video with news, blogging, opinion talk and text. AT&T targeting video content data usage from satellite TV premium programming of pay TV for internet technology. Thus, creating channel specific content development based upon segment pricing for the various blocks of programming such as sports, politics, news, and the various genres of movie making providing other revenue sources in addition to the traditional advertising business model.


In essence, a cable TV and satellite TV distribution strategy using the multitude of content with pricing strategies to group content and digital channels of distribution to usage experiences. AT&T’s strategy appears that of a vertically integrated telecom with TV network capabilities applied to the digital segmentation created by expanding technology for influence over content creation. An increasing international demand for American big budget movie productions (primarily China) will impact segmented distribution strategies by the sheer volume of a combined American and Chinese audience and distribution channel economics.

October 10, 2016

Economic Development and Wealth Distribution


Came across a Bloomberg news article that used the Gini index to measure US metropolis for wealth distribution. The article ranked the top 10 Most Unequal US Big Cities based upon the wealth distribution index which reminded me of the ECMAnalyst's conducted Census evaluation creating the Development Metric index using Percent US Economy and Percent US Population for the 100 largest US metropolitans. A different measure of US cities; nonetheless, both are intriguing evaluations of development. For example, Miami, FL was ranked as the most unequal city in the US but on the development index it is ranked 55th by development contribution to the US economy. Concentrations of wealth are likely attributable to basis of development in leisure, tourism, Latin America gateway, and entertainment. Neither measurement considers demography of distribution but it is largely inferred in Gini coefficient indexing. The constructs of the primary industries for a metropolitan are indicators of predictability for wealth distribution.


The only metropolitans in the top 10 Unequal US Big Cities that are also top 10 metropolis of the Development Metric are Washington, DC, New York City, and Boston, MA. It is both alarming and informative with Washington, DC being the center of U.S. and international politics with economic bases in legal and government activities setting policy for the country. And New York City, the largest metro population, adding confirmation to communities feeling economically "locked out" from the city's and the nation's progress primarily from decision making within the region's largest industry being finance (Wall Street) and Boston, MA mutual funds financial services plus educational services economy components. California has two metrpolitan areas in the top five of the Development Metric largely due to the computer and digital technology industry but neither are reflected in the top Gini coefficient index of wealth distribution of Most Unequal US Big Cities.





September 23, 2016

Politics and Regional Trade

The politics of regional trade agreements are the attempt to “harmonize” legal framework around ideals conducive to development while introducing Democratic societal functions. In a sense, exporting Democracy using corporate economic governance to open markets accessing capital which accelerates corporate acquisitions leading to corporate dislocation and employment issues at “home.” Relative to the basic process of business management, the environment created is one of Mergers and Acquisition versus Research and Development for growth within regional territories. Imbalances get reflected in regional areas where development has historically been concentrated to a specific industry limiting the ability to rebound from disruption.

Disruption occurs when regions that have historically been driven by, even dominated by religion governance ideals meet democracy’s ideal of human individual freedoms as basis for trade economics. The Morality conundrum. American politics’ overemphasis on racial relations from the religious perspective of Moral behaviours simply to protect political demography leveraging Black | White morality economics. Internationally, the struggle appears to be regional cultures' emphasis on homogeneity of religious practices preventing economic development and skepticism of the American democracy derived from a history of struggles to protect civil rights.


Thus, the basic harmony reflects the best of American ideals and practices with country region governance where compatible to establish an acceptable structure to begin economic trade among societies while protecting already established and developing interests. “Corporate flight” is a calculated interest of market profitability taking advantage of market openings and a perspective of equivalence to the American market protections. It is also the source of initial dislocations at “home” until a new balance is achieved within employment politics.

August 15, 2016

A Glimpse into the History of "Law" Industry


Intricate to the American story is the story of industry where "law" is not an exception to the developments and interrelations called politics. From the early arrivals looking for wealth in the new Americas as portrayed in the Discovery channel's Real Life Pirates of the Caribbean documentary to the industrialists looking to expand territory claims, the "law" and "order" philosophies of the era have been introduced to this discussion in the Evidentiary Theory blog posts Part I and Part II. Also related is the ideology of managing relationships within a political frame combining genome science and religion demography found in the Relativity Management Theory XX and XY discussion.


The findings are consistent within a system of wealth accumulation using global regions to play their part in monarchial institutional developments of planetary resources as a sort of "keepers of the wealth" relying on the "law" to maintain the parameters of play within a democratic political system of economic development. The fraternal nature of "law" industry attempts consistency across institutional governance of Government, Religon, and Corporation which sometimes gets reduced to a lowest common denominator. Reflecting wealth protection strategies to manage financial system concepts of valuation [earnings cash flows, stored currency wealth, precious material accumulations, & corporate industry politics]. All of which are displayed in the analysis of the Panama Papers and related firms implementing the international transactions.


Wealth Accumulation, Systems [Methods]?