HOW MULTINATIONAL MARKET GROUPS RELAXING BOARDER IN THEIR MEMBER COUNTRY.

1. TYPE OF MULTINATINAL MARKET
GROUPS AND THEIR ROLE IN RELAXING
BORDER
MD. Omar Faruk Hasib [ID:132011013]
Kazi Arafath [ID: 132011063]
Madina Islam Protiva [ID:132011114]
Israt Tabassum [ID:132011058]
Sharmil Ahmed [ID:132011172]

3. OPEC
 OPEC is defined as an abbreviation for Organization of Petroleum
Exporting Countries.
 A union of oil producing countries that regulate the amount of oil
each country is able to produce.

4. Country Joined OPEC Location
Algeria 1969 Africa
Angola 2007 Africa
Ecuador ** rejoined 2007 South America
IR Iran * 1960 Middle East
Iraq * 1960 Middle East
Kuwait * 1960 Middle East
Libya 1962 Africa
Nigeria 1971 Africa
Qatar 1961 Middle East
Saudi Arabia * 1960 Middle East
United Arab Emirates 1967 Middle East
Venezuela* 1960 South America

5. • Headquarters : Vienna, Austria
• Official language : English
• President : Rostam Ghasemi
• Secretary general : Abdallah el-Badri
• Currency : USD per barrel
• The OPEC Conference: The Conference generally
meets twice a year, in March and September.
• The Heads of Delegation :
Representatives are normally the
Ministers of Oil, Mines and
Energy of Member Countries.

6. OBJECTIVE
 Stable oil market, with reasonable prices and steady supplies to
consumers
 OPEC was made to make sure that the price of the oil in the world
market will be properly controlled.
 Their main goal is to prevent harmful increase in price of oil in global
market and make sure that nations that produce oil have a fair profit

7. SIDELINE OBJECTIVE
 Manipulate supply of oil in the market, in hopes of
keeping prices, and profits, high by producing less
oil than the market needs.
 While OPEC always wants to maximize profits for
themselves, they also don’t want to kill the golden
goose by driving prices so high that alternative
energy exploration becomes a top priority.
 OPEC tracks the oil production of NON-OPEC
nations and then adjusts its own production to
maintain its desired barrel price.

8. COMPETITIVE DYNAMICS OF OPEC
Before 1970
 No Major Role played by OPEC
During 1970
 Power of Price setting shifted from MNC Oil Companies to OPEC
By 1973
 OPEC countries changed the Pricing System
1975-1985
 Oil Production Increase from 48% to 71%
Mid 1980
 Survival became uncertain
 Market shares fell from 52% 30% in 1985

9. OIL PRODUCING SCENARIO

10. OFID was established in January 1976.
All non-OPEC developing countries are, in
principle, eligible for OFID assistance.
However, the least developed and other low-
income countries are accorded priority and,
therefore, receive a larger share.
Over the years, OFID has spread its financing to
134 countries, of which 53 are in Africa, 43 in Asia,
31 in Latin America and the Caribbean, and seven in
Europe.

12. TAXES ON OIL
 For example, in the UK the government in 2014 earned
about 60.1% of the price charged for every liter of pump
fuel sold to consumers. On the other hand, oil producing
countries (including OPEC) earned about 29.7% of the total
pump fuel price.

14. THE EUROPEAN UNION

15. The European Union is a group of countries whose
governments work together.
It's like a club. To join you have to agree to follow the
rules and in return you get certain benefits.
This group of countries have to pay taxes but
they have benefits. For example, if there is a
natural disaster in one of the member countries
the others give them money or also in wars.
WHAT IS THE EU?

16. How many people live in the EU?
Population in millions
(2015)
508 million in total

17. TIMELINE
THE END
OF THE
II WORLD
WAR
TREATY OF
ROME
makes the
EUROPEAN
ECONOMIC
COMMUNITY
(EEC) Common
market/ Single
Market
TREATY OF
PARIS:
creation of
EUROPEAN
COAL AND
STEEL
COMMUNIT
Y (ECSC)
Euro
banknotes
and coins
replaced
national
currencies
in member
states.
2013,Croatiabecame
the28thEUmember
1945 1951 1957
The European
Union was formally
established when
the MAASTRICHT
TREATY came into
force setting clear
rules for the future
currency
1992 2002

18. HOW THE EUROPEAN UNION
HAS GROWN: ENLARGEMENT: FROM 6 TO 28 COUNTRIES
2004 is the
biggest
expansion
(enlargement
) of the Union
since it
started

19. EUOBJECTIVES The purpose of the EU is protect and strengthen the rights of its
members
Political
Objectives
•To promote democracy and freedom in Europea
and around the world
•To prevent diseases and promote medical
research
•To fight cybercrime, terrorism and human
trafficking
•To improve working conditions and promotes
equal opportunities
Economic
Objectives
•To create jobs and promote economic
growth
•To develop small businesses and encourage
innovation
•To act together to help member states with
economic problems.
•To make it posible for goods, money and
services to move freely between countries

20. THE EURO
It was introduced in 2002
It is a symbol of unity
There are 7
bank notes
The coins have the same
design on one side but the
other side is country-specific
It is based on a Greek
letter. The two bars
across the middle are a
symbol of stability
8 coins
SPANISH €
FRENCH €

21. SINGLE MARKET
In 1993, the most of the trade
barriers (physical, fiscal, technical)
have been...
REMOVED!
GOODS, MONEY,
PEOPLE AND
SERVICES COULD
MOVE FREELY
ALL GOODS ARE
PRODUCED
ACCORDING TO THE
SAME
STANDARDS/QUALITY
SO…THIS MAKES THIS MARKET
MORE COMPETITIVE
BECAUSE…
All companies are under
the same trading rules
and stantards
SO…
SO…

22. WHAT ADVANTAGES ARE THERE OF BEING AN
EUCITIZEN?
Employment Mobility: FREEDOM TO WORK
ANYWHERE WITHIN THE EU.
HAVING THE SAME CURRENCY MAKES IT EASIER
TO BUY (IMPORT) AND SELL (EXPORT).
NO BORDER TAXES.
Residential Mobility: FREEDOM TO LIVE IN
OTHER EU COUNTRIES.
As a citizen of the European Union, you deserve all the rights and
privileges offered by the country in which you live: Health, education,
unemployment programs, pension...

23. NETHERLANDS GERMANY
BELGIUM

26. SAFTA-INTRODUCTION
 An agreement reached on 6 January 2004 at
Islamabad.
 It created a free trade are between all the member
countries.
 The SAFTA agreement came into force on 1
January 2006.
 The purpose of SAFTA is to encourage and elevate
common contract among the countries such as
medium and long term contracts.

27. COUNTRIES IN SAFTA

28. OBJECTIVES OF SAFTA
Elimination of trade barriers
Promoting conditions of fair
competition
Creation of effective mechanism
Framework for regional co-operation

29. AGREEMENT OF SAFTA
Goods
Services
Investment

30. SAFTA-INSTRUMENTS
 Trade Liberalization Programme
 Non Tariff Barriers
 Sensitive List
 Rules of Origin
 Special and Differential treatment Provision for LDC

31. MERCOSUR

32. INTRODUCTION
 "Common Market of the South America" is the
largest trading bloc in South America
 Its purpose is to promote free trade and the fluid
movement of goods, people, and currency
 It also establishes a common trade policy with
respect to non-members

33. MEMBER COUNTRIES
 Argentina
 Brazil
 Paraguay
 Uruguay
 Venezuela
Observer
 Mexico
 New Zealand

34. BOLIVIA JOINING MERCOSUR

35. OBJECTIVE
 The free transit of produced goods, services
 Eliminate internal barrier
 Fixing of a common external tariff (CET)
 Allow free movement of resources

36. ADMINISTRATIVE/INSTITUTIONAL STRUCTURE
OF MERCOSUR
 Common Market Council (CMC)
 Common Market Group ( CMG)
 Commercial Commission of MERCOSUR (CCM)
 Joint Parliamentary Commission (CPS)
 Social-Economic Consultative Forum (FCES)

37. BACKGROUND
 1991: Treaty of Asunción goes into force in 1991,
effectively mandating the creation of a common
southern market (MERCOSUR) by December 31,
1994. Original signatories are Brazil, Argentina,
Paraguay, and Uruguay
 1994: Creation of Mercosur
 1995: Creation of customs union. MERCOSUR and
the European Union sign an agreement of trade
association and cooperation in various areas
 1999: Free trade agreement with two trading block EU
and NAFTA
 2004: Preferential trade agreement with India

38. FACTS
 Population : 0. 3 billion(2010) , 43% of Latin
America’s population
 Languages : Portuguese, Guaraní and Spanish
 Combined GNI : $1.1 trillion(2010)
,encompasses roughly 50% of Latin America’s
Gross Domestic Product
 Land : 7,941,856 sq. miles, 59% of its total
landmass
 Climate : most types of climate from Arctic to
tropical
 4th largest trading bloc in the world after EU,
NAFTA, ASEAN (2010)

41. TRADE IN GOODS

46. THANK
YOU!