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Published by:
Stanford Business School (2019)
Version:
8 October 2019
Revision date:
18-Dec-2019
Length:
36 pages
Data source:
Published sources

Abstract

What does the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) mean for a country like Malaysia? This case investigates the far-reaching domestic ramifications of this type of 'mega-regional agreement', as well as how international agreements can be an important way to strengthen alliances and global standing. The case asks students to evaluate an important decision facing Prime Minister Mahathir Mohamad, a long-serving former prime minister who surprised everyone by winning Malaysia's May 2018 election. Having come out of retirement to secure his legacy, Mahathir faces a complicated political choice. The previous administration had signed on to the CPTPP, and signatory countries must now pass the deal through their respective domestic approval processes. But Mahathir's party and government are divided on the deal, which could bring new export and investment opportunities - but also would require Malaysia to make commitments to protect labor rights and intellectual property. These commitments, in turn, could prove politically unpopular at home.

Topics

International trade; Global investment; Trade agreements; Business government relations; Economic development; Global business; International relations; Negotiation

Setting

The events covered by this item took place in 2019.

Geographical setting

Region:
Asia
Country:
Malaysia

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