Facilitating Organizational Efficiencies and Strategic Choice for New Entrants Sample Clauses

Facilitating Organizational Efficiencies and Strategic Choice for New Entrants. By changing the rules to remove market distortions, the GBT deal will give service providers greater latitude to optimize their organizational structures and strategies and thus enhance their performance and ability to raise capital. Prior to the agreement, the absence of a stable, predictable, and coherent regulatory environment across countries forced companies to undergo contortions if they wanted to participate in various markets. For example, globalization efforts often required finding domestic counterparts with whom to form joint ventures or other kinds of strategic alliances, since full- blown direct foreign investment in public networks and services was limited or precluded. This kind of adjustment is akin to what has happened historically in goods industries, where tariffs and NTBs forced companies to make local investments in markets they wished to serve. With the commercial presence concessions of the GBT deal, companies can often choose more freely, on the basis of economic rather than political considerations, what sorts of internal organizational structures, external relationships with suppliers and customers, and service offerings are best suited to their overall strategies. Of course, some countries have preserved equity limitations in their national schedules, but over time these may be bargained away or unilaterally removed in the context of WTO governance. This is, after all, what has happened to tariffs over successive GATT rounds. Once equity limitations and other restrictions are formally specified and on the table, they are subject to pressures to be taken off it. As that process unfolds in the years ahead, the argument goes, private firms and entrepreneurial public PTOs alike will have greater and greater latitude to improve their efficiency and their ability to innovate to the benefit of their customers and the world economy more generally.