The countries in an RTA may or may not be in close proximity to one another; for example, the United States has regional trading partners located as far away as the Middle Eastnotes economist Donna Welles. RTAs exist in direct contrast to the more cumbersome World Trade Organization-administered agreements that may limit access to markets and tie countries down in negotiations. RTAs create a range of benefits for participating countries, which include, but are not limited to, lowered or eliminated import and export tariffs, political and social reform, and infrastructure investment.
While generally better suited to larger organizations, in some circumstances a divisional organizational structure may also benefit a smaller business.
In all cases, groups are mostly self-managed and focused upon a narrow aspect of the company's products or services. As with any organization structure, divisional structures have both strengths and weaknesses.
What Is Divisional Organizational Structure? A divisional organizational structure usually consists of several parallel teams focusing on a single product or service line. Examples of a product line are the various car brands under General Motors or Microsoft's software platforms.
One example of a service line is Bank of America's retail, commercial, investing and asset management arms. Unlike departments, divisions are more autonomous, each with its own top executive — often a vice president —and typically manage their own hiring, budgeting and advertising.
Though small businesses rarely use a divisional structure, it can work for such firms as advertising agencies which have dedicated staff and budgets that focus on major clients or industries. Advantages of Divisional Organizational Structure Divisions work well because they allow a team to focus upon a single product or service, with a leadership structure that supports its major strategic objectives.
Having its own president or vice president makes it more likely the division will receive the resources it needs from the company.
Also, a division's focus allows it to build a common culture and esprit de corps that contributes both to higher morale and a better knowledge of the division's portfolio.
This is far preferable to having its product or service dispersed among multiple departments through the organization. Disadvantages of Divisional Organizational Structure A divisional structure also has weaknesses.
A company comprised of competing divisions may allow office politics instead of sound strategic thinking to affect its view on such matters as allocation of company resources.
Thus, one division will sometimes act to undermine another. Also, divisions can bring compartmentalization that can lead to incompatibilities. Some experts suggested that Microsoft's divisional structure contributed to a situation where its own products were incompatible across internal business units.
Organizational Structure Alternatives Large organizations that want the focus of a division could instead spin off into a free-standing subsidiary.
Smaller organizations can work through major projects via dedicated departments or ad-hoc cross-functional work teams. Another promising organizational structure is Matrix Structure, which combines a Functional Structure often a traditional hierarchical organizational structure and a Project Structure.
Making It Work To be successful, divisions must be well managed. Executive leadership is the single most important determinant of success for a company using a divisional structure.
The top leaders need to understand what each division is doing and provide leadership to the division chiefs on how to accommodate new strategic directions or more effectively partner across divisions.
In addition, the executives should have a solid grasp of resource use. Having a shared pool of centrally-managed resources like administrative support or office equipment can reduce costs and organizational complexity.The advantages of MNZFTA are large when compared to the tranceformingnlp.com would also provide a competitive edge for New Zealand to enter more countries with its exports.
3) How do regional trade agreements compare with multilateral trade initiatives such as those through WTO? Advantages and disadvantages of regional integration Introduction The chosen trading bloc is the EU.
Spain is a member of the European Union. The European Union is an economic and political union of 27 member nations which are located in Europe. Advantages of Specialisation at Regional Level efficient use of resources – A region could specialise in a particular industry due to availability of resources.
Therefore it will be easier to use that resource efficiently. The Advantages of Regional Trade Agreements by Maya Black - Updated September 26, Simply put, a regional trade agreement, or RTA, makes it easier for countries, such as the United States, Canada and Mexico in the North American Free Trade Agreement, to engage in trade.
The disadvantages of regional integration include limited fiscal capabilities, cultural centralization, creation of trading blocs, diversion of trade and surrendering some degree of sovereignty.
Regional integration refers to various economic and political agreements that are formed between. Advantages of List PR. In addition to the advantages attached to PR systems generally, List PR makes it more likely that the representatives of minority cultures/groups will be elected.