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Characteristics of two preferential trade agreements

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Firm EFG is planning to expand its market from Western Europe to North America and South America. The CEO is considering the two markets based on the hierarchy of Preferential Trade Agreements covered in class as well as the political risk related factors.

a. Briefly explain the major characteristics of two Preferential Trade Agreements that apply to the abovementioned two markets, respectively. Using specific examples in relation to the two markets, explain how would they be advantageous to Firm EFG.

b. Identify and explain any three relevant factors that firm EFG should consider in their political risk assessment of North and South American markets.

Reference no: EM133259143

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