Bridging The Transatlantic Economy Harvard Case Solution & Analysis

Bridging The Transatlantic Economy Case Solution


In 2016, the US and EU had a free trade agreement over the transatlantic trade and investments partnership (TTIP),which started in 2013 but could not be proceeded further up till now and due to the delay; negotiation were postponed for severalunderlying reasons, which is where the concept of TTIP was established. With the elections approaching soon with opposition in public; there are higher possibilities for such a comprehensive trade agreement tobe executed.

What are the main points in the negotiation of TTIP?

The main points of TTIP were:

  • Market entry, including:
  • Encouragingthe sale of goods and reducing business taxes
  • Directing barriers to exports of services;
  • Opening public purchasing markets

Legal collaboration, including

  • Major merging between EU and US laws;
  • Clarifying the practical demand of products;
  • Decreasing unimportantcopying in the product line.

Rules, including

  • Encouraging the safety of workers' rights and the domain;
  • Refining cultural laws and rules;
  • A new investment safety plan is introduced

Investment Safety

  • Provide a chain for overseas financersto bring requestsdirectly to EU and US member regions through negotiation.
  • A likely appeal process to studynegotiation decisions.

What is the potential impact of TTIP on the economy (of participating and third countries)?

The growth of the policypartnerhave the following useful options: 1) TTIP conference should highlight the significance of emerging combination measures countries become series of worldlyworth; 2) Attempt need to be made at the EUstrength to increase greater stability within TTIP and growth policy and  perspectives.

By decreasing inflation and taking off tax hurdles, TTIP will have a direct and significanteffect on emerging economies and growing states, as well as a significant impact on the worldly market system, both of which are important to world’s development.

Direct Impact

By decreasing the value of trade between the U.S and In the EU, TTIP could guide to an increased level of trade between the two countries, where few commodities are sold other nations. Cost and domestic issuance of this, the result of trade variety will depend on this amount of definite prices and trade connections with other countries as well.

Basic Issue(s) or Associated Issue(s)

There are some issues:

1: Regulatory Issues: If an automobile manufacturer makes a new model of car in the US then it would have to reach the standards of EU before exporting it to the EU region and vice versa Both these big economic consumers would suffer because if the products or goods do not match the standards of either the US or EU, which would result in unacceptance of the good in both the significant markets.

2: Tariff: They act as barriers, making the new investments much harder in both the regions. For example: if EU has to export the x-ray machine to the US; it would have to spend millions of dollars in the compliance cost before selling it in the US market.


So, this is where TTIP was launched, in which both of the countries made 16 trillion of goods and services and discussion were held on these Regulatory and Tariff issues, in order to bring an improvement in the market conditions.

Issue(s) Analysis or Information Summary

TTIP transatlantic trade & Investments Partnership is the trade agreement between the US and EU.

AIM: To promote trade and multilateral growth.

The agreement is currently under the negotiation and its three broad areas are: Market Access, Specific Regulation, and Mode of co-operations. The negotiations were to be finalized in 2014, but due to some reasons; these regulations were not finalized till2020. And according to economist; the TTIP would benefit the US by 90 B and EU by 120 B.

TTIPis basically a single free trade investment region where the world’s two big economies USA and EU are doing trade. Together they represent 50% of world’s GDP, from which, over 600 million are the richest consumers.In 2016, the United States and the European Union fought to agree over the Transatlantic

Trade and Investment Partnership (TTIP) begun in June 2013, but TTIP dealings’ finalizations took much longer time than expected, with decisions going ahead the two sides of the Atlantic and a rising hostility in the general assessment.                      

Alternative Solutions or Options

If TTIP would happen between the US and the EU; it will not only boost the US or EU economy but would also improve the entire world’seconomy by 80 billion, which would increase one third of the world global trade and would create millions of employments as well...............

This is just a sample partial case solution. Please place the order on the website to order your own originally done case solution.

Share This


Save Up To




Register now and save up to 30%.