WK4 Regional Economic Integration


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WK4 Regional Economic Integration

  1. 1. WK4 Agenda<br />Hot topic: <br />News, students’ need, Gen R<br />No class last week of July<br />Exam I next week! Chapter1-7<br />Video & Info Search Discovery<br />Homework<br />Executive summary<br />Whole class team work? <br />Benefit, cost, risk analysis=>ASEAN outlook<br />Verifiable information(challenging vs. impressive)<br />“Those who know don’t talk, those who talk don’t know” vs. “Those who talk bulls_ _t, _ _upid kids don’t talk”<br />Win win<br />1<br />MIB, BBA 2010<br />
  2. 2. ASEAN<br />From the Video clips:<br />What countries are the ASEAN member?<br />What’s ASEAN+3?<br />What’s the benefit of ASEAN?<br />What’s the road ahead?<br />How do we start?<br />MIB, BBA 2010<br />2<br />
  3. 3. EU<br />From the video clips:<br />What’s the status form of economic integration for EU?<br />Where are we?<br />What’s political union?<br />Should Turkey join EU?<br />What’s the problem?<br />MIB, BBA 2010<br />3<br />
  4. 4. NAFTA<br />From the video clips:<br />Was NAFTA a mistake?<br />What’s their problem?<br />How will they fix the problem?<br />MIB, BBA 2010<br />4<br />
  5. 5. Info Search <br />In 4 groups find out more information on ASEAN, EU, NAFTA, and WTO.<br />Present your knowledge in a game.<br />Who wants to be a millionaire?<br />Are you smarter than the 5th grade?<br />Press the button.<br />MIB, BBA 2010<br />5<br />
  6. 6. Homework<br />In four groups find the information on the amount of trade, product types, rules, tariffs of the products to the outside producers, possible trade negotiation:<br />Thai and EU<br />Thai and the US.<br />Thai and China<br />Trade within ASEAN<br />Compare your information with the Bilateral of Korea and EU, Korea and the US., and China bilateral with other countries.<br />What’s the big picture of these jigsaws?<br />MIB, BBA 2010<br />6<br />
  7. 7. WK4.2 Agenda<br />Hot topics:<br />News: new TVs<br />Tutoring vs. Internship<br />Practice Listening “True or false”<br />Lecture<br />Mind map & Homework<br />MIB, BBA 2010<br />7<br />
  8. 8. Practice Listening “True or False”<br />There are three organizations under WTO(GATS, TRIPS, and IMF)<br />The development of GATT started with G7, G10, G15, G24 and G77.<br />G to G is not allowed for WTO members.<br />WTO irresolvable issues includes: government subsidies, intellectual property, human rights, and environmental protection.<br />Dr. Supachai is the current director general of WTO.<br />MIB, BBA 2010<br />8<br />
  9. 9. Development of World Trading System<br />MIB, BBA 2010<br />9<br />
  10. 10. Development of World Trading System<br />MIB, BBA 2010<br />10<br />
  11. 11. WTO Principle<br />MIB, BBA 2010<br />11<br />
  12. 12. WTO Agreements<br />MIB, BBA 2010<br />12<br />
  13. 13. WTO Agreements<br />MIB, BBA 2010<br />13<br />
  14. 14. Regional Economic Integration<br />Regional Economic Integration:<br />agreements between countries to reduce tariff and NTB to the free flow of goods, services and factors of production.<br />Regional trade promote free trade<br />Will trade blocks compete against each other?<br />MIB, BBA 2010<br />14<br />
  15. 15. Level of Economic Integration<br />MIB, BBA 2010<br />15<br />
  16. 16. Economic Integration<br />Advantages<br />Trade creation: low cost producers within the free trade replace high cost domestic producers<br />Unanimity: greater political clout in world politic<br />Political cooperation: dependency on each other reduces the likelihood of violent conflict<br />Job opportunity<br />Disadvantages<br />Trade diversion: high cost suppliers within the free trade replace lower cost external suppliers<br />Job loss<br />Loss of national sovereignty: UK fear of less flexibility in national monetary policy<br />MIB, BBA 2010<br />16<br />
  17. 17. European Union<br />27 Member states of the European Union<br />What countries are the original members?<br />What are the candidate countries?<br />MIB, BBA 2010<br />17<br />
  18. 18. Evolution of The European Union<br />MIB, BBA 2010<br />18<br />
  19. 19. EU Institutions<br />MIB, BBA 2010<br />19<br />
  20. 20. EU 2020<br />10 Year strategic plan for EU towards a green and innovative economy<br />Smart growth – developing an economy based on knowledge and innovation. <br />Sustainable growth – promoting a more resource efficient, greener and more competitive economy. <br />Inclusive growth – fostering a high-employment economy delivering economic, social and territorial cohesion. <br />Action: 3% R&D, Education, Digital Society<br />MIB, BBA 2010<br />20<br />
  21. 21. NAFTA<br />The North American Free Trade Agreement(1994) consists of America, Canada, and Mexico.<br />Removed all tariffs and barriers in 2008.<br />Protects Intellectual Property Rights.<br />Removed restrictions on FDI.<br />Each country use its own environmental standards.<br />Two commissions to impose fines and remove trade privileges when environmental standards, health and safety, labor, and minimum wage are ignored.<br />NAFTA superhighway?<br />MIB, BBA 2010<br />21<br />
  22. 22. NAFTA<br />Critics:<br />Job loss and wage level would decline in the US and Canada<br />Mexican workers would immigrate north<br />Pollution would increase due to Mexican lower environmental standard<br />Mexico would lose its sovereignty<br />Supporters:<br />All countries will benefit.<br />Increase jobs in Mexico<br />The US and Canada will have access to larger and more prosperous market, with lower consumer goods produced in Mexico<br />The US and Canadian firms with production sites in Mexico will be more competitive on world market<br />MIB, BBA 2010<br />22<br />
  23. 23. NAFTA<br />Hills<br />The impacts was subtle.<br />Political stability in Mexico.<br />Other Latin American countries want to join.<br />US and Canada are adopting a wait and see attitude.<br />Others<br />NAFTA didn’t deliver the promising result that the people had expected.<br />It creates trade diversion<br />Other problems still exist—drugs, immigration, pollution, and labor<br />Other Latin American and South American countries are adopting a wait and see attitude—use Cuba as a litmus test with the US.<br />MIB, BBA 2010<br />23<br />
  24. 24. ASEAN<br />Formed in 1967<br />Created ASEAN Free Trade Area(AFTA) in 1993 (10 years tariffs and barriers reduction plan, except for sensitive list until 2010)<br />MIB, BBA 2010<br />24<br />
  25. 25. AFTA<br />Advantages<br />Trade creation: lower price and better quality<br />500 million people, increase competitive advantage to ASEAN producers (economy of scales, factor of productions, attract FDI)<br />Unanimity<br />Political cooperation: dependency on each other reduces the likelihood of violent conflict, and not depend on the world super power countries<br />Job opportunity<br />MIB, BBA 2010<br />25<br />
  26. 26. ASEAN 2020<br />TradeTechnology<br />TradeBetter quality of life<br />ASEAN AFTAAEC 2015ASEAN ONE 2020<br />ASEAN 2020—Partnership in Dynamic Development<br />Prosperous ASEAN with stability<br />High competitive advantage<br />Economic Union (Free trade, free flow of factor of production, integrate economy, common currency, harmonize tax rate)<br />Get rid of poverty and social inequality<br />MIB, BBA 2010<br />26<br />
  27. 27. Summary<br />Why do countries participate in Economic integration? Level of integration?<br />What organization regulate the trade rules?<br />What’s the key success factor for economic integration? How can we apply sufficiency philosophy?<br />What did you learn from NAFTA and EU?<br />MIB, BBA 2010<br />27<br />
  28. 28. Manager Implication<br />MIB, BBA 2010<br />28<br />
  29. 29. WK4.3 Agenda<br />Discussion<br />ASEAN Companies<br />Vocabularies<br />TRIPS and NTM<br />Mind map continue<br />Homework discussion<br />MIB, BBA 2010<br />29<br />
  30. 30. Homework<br />MIB, BBA 2010<br />30<br />What information can you get from the table?<br />What would be the possible trade diversion?<br />How can we solve this problem?<br />What would be the competition?<br />