The document discusses various forms of cross-national cooperation and trade agreements. It describes how the North American Free Trade Agreement (NAFTA) positively impacted Walmart's success in Mexico by reducing tariffs, improving transportation infrastructure, and allowing foreign investment. NAFTA encouraged lower costs for Walmart in Mexico through cheaper labor and imports. The document also provides overviews of other trade organizations like the World Trade Organization (WTO) and regional economic groups around the world.
Cross national cooperation and agreements pptSachin Bohra
The document discusses cross-national cooperation through various international and regional trade agreements and economic integration efforts. It describes the World Trade Organization (WTO) and its role in facilitating global free trade. Various types and examples of regional economic integration are also outlined, including the European Union, NAFTA, and ASEAN. The key effects and structures of economic integration agreements are summarized.
Cross national cooperation and agreementsSachin Bohra
The document discusses various forms of cross-national cooperation and economic integration agreements. It describes the World Trade Organization (WTO) and its goals of facilitating open trade and adjudicating disputes between member nations. Regional economic integration aims to reduce or eliminate trade barriers between nations and can take the form of free trade areas, customs unions, common markets, or full economic unions with shared policies and currency. Examples discussed include the European Union, NAFTA, and various regional bodies in Asia, Africa, and elsewhere.
The document discusses various forms and examples of regional economic integration agreements between groups of countries. It outlines different levels of integration from free trade areas to economic unions. Regional integration aims to reduce trade barriers and stimulate economic growth. However, it can also lead to trade diversion and costs from adjusting to more open markets. The EU and NAFTA are two prominent examples of regional integration discussed in the document.
Regional economic groups allow countries in a particular region to establish common trade rules and regulations. This promotes trade by reducing barriers between member countries through free trade areas and customs unions. When countries form regional trade groups, it can increase national income through increased trade (trade creation) but may also divert trade away from non-member countries (trade diversion). Regional groups have grown in recent decades and now account for over a third of global trade. They are seen as important forms of increasing trade between both developed and developing countries to support economic growth.
Regional economic integration refers to agreements among countries in a geographic region to reduce and ultimately remove trade barriers. Different levels of integration exist, from free trade areas with no barriers to goods and services, to customs unions with common external trade policies, to economic and monetary unions with synchronized fiscal and monetary policies and a shared currency. While integration increases economic growth and political cooperation, it also risks loss of sovereignty and job losses as domestic industries become uncompetitive. The formation of the European Union sought to foster lasting peace and economic power in Europe following two world wars.
Trade blocs are preferential trade agreements between a subset of countries that significantly reduce trade barriers within member countries but maintain barriers with non-member countries. The document discusses the definition and examples of major trade blocs worldwide. It also analyzes the causes of trade bloc formation, including political motivations and pressures to liberalize trade regionally rather than multilaterally. Finally, it examines the potential trade and welfare effects of trade blocs on member and non-member countries.
The document discusses trade agreements and regional trade agreements. It provides examples of major regional trade agreements like the EU, NAFTA, and ASEAN. It also explains different levels of economic integration between countries, from free trade areas to customs unions and single markets. A customs union like the EU abolishes tariffs between members but sets a common external tariff. It can lead to both trade creation and trade diversion effects.
Marketing (oral)regional economic and politicalintegrationjuanconderevuelta2
The document discusses different levels and types of regional economic and political integration. It outlines common determinants that drive integration such as shared culture, history, and proximity. Integration can range from bilateral/multilateral agreements and free trade areas to deeper integration like customs unions, common markets, monetary unions, and political unions. Examples provided include the EU, NAFTA, ASEAN, and African economic communities.
Cross national cooperation and agreements pptSachin Bohra
The document discusses cross-national cooperation through various international and regional trade agreements and economic integration efforts. It describes the World Trade Organization (WTO) and its role in facilitating global free trade. Various types and examples of regional economic integration are also outlined, including the European Union, NAFTA, and ASEAN. The key effects and structures of economic integration agreements are summarized.
Cross national cooperation and agreementsSachin Bohra
The document discusses various forms of cross-national cooperation and economic integration agreements. It describes the World Trade Organization (WTO) and its goals of facilitating open trade and adjudicating disputes between member nations. Regional economic integration aims to reduce or eliminate trade barriers between nations and can take the form of free trade areas, customs unions, common markets, or full economic unions with shared policies and currency. Examples discussed include the European Union, NAFTA, and various regional bodies in Asia, Africa, and elsewhere.
The document discusses various forms and examples of regional economic integration agreements between groups of countries. It outlines different levels of integration from free trade areas to economic unions. Regional integration aims to reduce trade barriers and stimulate economic growth. However, it can also lead to trade diversion and costs from adjusting to more open markets. The EU and NAFTA are two prominent examples of regional integration discussed in the document.
Regional economic groups allow countries in a particular region to establish common trade rules and regulations. This promotes trade by reducing barriers between member countries through free trade areas and customs unions. When countries form regional trade groups, it can increase national income through increased trade (trade creation) but may also divert trade away from non-member countries (trade diversion). Regional groups have grown in recent decades and now account for over a third of global trade. They are seen as important forms of increasing trade between both developed and developing countries to support economic growth.
Regional economic integration refers to agreements among countries in a geographic region to reduce and ultimately remove trade barriers. Different levels of integration exist, from free trade areas with no barriers to goods and services, to customs unions with common external trade policies, to economic and monetary unions with synchronized fiscal and monetary policies and a shared currency. While integration increases economic growth and political cooperation, it also risks loss of sovereignty and job losses as domestic industries become uncompetitive. The formation of the European Union sought to foster lasting peace and economic power in Europe following two world wars.
Trade blocs are preferential trade agreements between a subset of countries that significantly reduce trade barriers within member countries but maintain barriers with non-member countries. The document discusses the definition and examples of major trade blocs worldwide. It also analyzes the causes of trade bloc formation, including political motivations and pressures to liberalize trade regionally rather than multilaterally. Finally, it examines the potential trade and welfare effects of trade blocs on member and non-member countries.
The document discusses trade agreements and regional trade agreements. It provides examples of major regional trade agreements like the EU, NAFTA, and ASEAN. It also explains different levels of economic integration between countries, from free trade areas to customs unions and single markets. A customs union like the EU abolishes tariffs between members but sets a common external tariff. It can lead to both trade creation and trade diversion effects.
Marketing (oral)regional economic and politicalintegrationjuanconderevuelta2
The document discusses different levels and types of regional economic and political integration. It outlines common determinants that drive integration such as shared culture, history, and proximity. Integration can range from bilateral/multilateral agreements and free trade areas to deeper integration like customs unions, common markets, monetary unions, and political unions. Examples provided include the EU, NAFTA, ASEAN, and African economic communities.
Economic integration involves reducing trade barriers and coordinating economic policies between countries. It aims to lower costs for consumers and producers and increase trade. There are several levels of economic integration, from preferential trade areas with lower tariffs between members to customs unions with common external tariffs and common markets adding free movement of goods, services, capital and labor. The highest levels involve a common currency and centralized economic policies as in the European Union.
Economic integration and levels of integrationMahadi Hasan
The document discusses different levels of economic integration globally, including free trade areas, customs unions, common markets, economic unions, and political unions. It provides examples for each type of integration, such as NAFTA for a free trade area and the European Union as both an economic and political union. The highest level of integration is a political union, where members subordinate national political interests to a multistate organization.
The document discusses regional economic integration and different levels of integration between countries. It defines various types of integration agreements like preferential trade areas, free trade areas, customs unions, common markets, and economic unions. It explains that preferential trade areas provide lower trade barriers between member countries than with non-members, while free trade areas remove all trade barriers but maintain external barriers. Customs unions remove internal barriers and adopt a common external trade policy. Common markets allow free movement of goods, services, labor and capital. Economic unions require harmonized economic and fiscal policies along with a common currency. Regional integration can bring economic and political benefits like increased trade, investment, market size and cooperation, but may also result in trade diversion and shifts in employment.
This document provides an overview of regional economic integration agreements. It discusses the objectives of economic integration such as strengthening political ties and improving bargaining power. It describes different levels of integration from free trade areas to economic unions. Examples of regional agreements discussed include the European Union, NAFTA, MERCOSUR, and ASEAN. The EU eliminated trade barriers and allowed free movement of goods, services, and factors of production. NAFTA achieved trade liberalization between the US, Canada, and Mexico. Regional agreements in Latin America and Southeast Asia aimed to accelerate economic development among developing countries.
The document discusses the importance of knowledge of international business for management students. A student pursuing a management degree may find themselves placed in a foreign country after graduation, so understanding international business helps prepare them mentally for an unfamiliar environment abroad. Regional economic integration is also discussed as an important topic within an international business course.
Trade blocs and free trade agreements aim to reduce trade barriers between participating countries. The document discusses several trade blocs and agreements including OPEC, the European Economic Community, NAFTA, UNCTAD, and WTO agreements. It provides brief descriptions of the objectives and functions of these organizations. The document also lists some benefits and potential negatives of trade blocs and free trade agreements on international trade.
The document discusses economic integration, including its various forms and levels. It defines preferential trade agreements, free trade areas, customs unions, common markets, and economic unions. It also outlines some benefits of economic integration like increased trade and foreign investment. Examples of economic unions discussed include the European Union, NAFTA, EFTA, and APEC. Potential problems with integration are also noted, such as costs of a single currency and differences between member economies.
The document discusses regional economic integration and its various stages. It provides examples of major trade blocs like NAFTA, ASEAN, MERCOSUR, and the EU. The stages of integration range from free trade areas with no tariffs between members but individual external tariffs, to customs unions with unified external tariffs, to common markets that also allow free movement of capital and labor. Deeper integration involves common currencies and unified economic policies. Both trade creation and diversion effects as well as other advantages and disadvantages are discussed in relation to economic integration.
This chapter discusses global and regional economic integration, including the evolution of key organizations like the GATT and WTO. It outlines the objectives of studying this topic, such as understanding the advantages and disadvantages of economic integration efforts. Examples provided include NAFTA in North America and integration in Europe, Asia Pacific, and Africa. Debates are presented around whether regional integration helps or hinders broader global integration.
Regional Economic Integration (REI) refers to the commercial policy of discriminatively reducing or eliminating trade barriers only between the states joining together.
Regional economic groups eliminate or reduce trade tariffs (and other trade barriers) among the Partner States while maintaining tariffs or barriers for the rest of the world (non-member countries).
Geographical proximity, cultural, historical, and ideological similarities, competitive or complementary economic linkages, and a common language among the Partner States are importantly required for effective economic integration.
The aim of economic integration is to lessen costs for both consumers and producers, in addition to increase trade between the countries taking part in the agreement.
A primary economic objective of integration is to raise:
a) real output and income of the participants
&
b) rate of growth
by increasing specialization and competition by facilitating desirable structural (linkages) changes.
Economic integration involves reducing trade barriers between countries through international agreements or regional partnerships. The main approaches are multilateral cooperation under the WTO or smaller regional blocs. Integration provides benefits like increased trade opportunities and employment but can also divert trade away from non-member states. Deeper integration involves moving from preferential trade areas and free trade zones to customs unions and common markets with coordinated economic policies and freedom of movement. The European Union represents the most integrated model as both an economic and political union.
International trade policies deal with how national governments regulate imports and exports through measures like tariffs and quotas. India transitioned in the 1990s from a closed economy with high tariffs and restrictions to a more open one, increasing trade as a percentage of GDP. The objectives of trade policies are to both protect domestic industries but also optimize resources and benefit consumers through increased market access and trade.
Regional economic integration refers to agreements between countries in a geographic region to reduce trade barriers and promote free trade. There are different levels of economic integration ranging from free trade areas to political unions. The European Union is an example of an imperfect economic union working towards partial political union. NAFTA is a free trade area between the US, Canada, and Mexico that has both benefits and criticisms. Other regional trade blocs discussed include ASEAN, APEC, MERCOSUR, and proposals for a Free Trade Area of the Americas. Regional integration presents both opportunities and threats for international managers to consider.
The document provides an overview of regional economic integration efforts in Asia, North America, and Europe. It discusses several trade agreements and organizations, including the European Union, NAFTA, ASEAN, SAFTA, APEC, and SICA. The key points are:
1) The European Union has been the most developed model of regional integration but was shaken by the recent economic crisis.
2) Asia's existing free trade agreements are largely limited to tariff cuts and have barely addressed non-tariff barriers.
3) Asian regional integration is unlikely to come from top-down initiatives but from renewed unilateral liberalization beyond just border barriers.
This document discusses economic integration at three levels - global, regional, and bilateral. It outlines four stages of economic integration: free trade areas, customs unions, common markets, and economic unions. Free trade areas eliminate internal tariffs but maintain external tariffs, while customs unions have common external tariffs. Common markets integrate free movement of goods, services, capital and labor. Economic unions coordinate fiscal and monetary policy in addition to a common market. The document also covers some economic effects like trade creation and diversion, as well as issues like trade deflection and national sovereignty.
This document outlines the agenda for a class that discusses various economic integration agreements including ASEAN, EU, NAFTA, and WTO. It includes topics such as the history and development of these organizations, their key principles and agreements, benefits and challenges of economic integration, and case studies of specific integration regions. Students will learn about the member countries, institutions, and goals of integration bodies. They will also analyze trade data, barriers, and impacts of integration between countries and regions through group assignments, presentations, and discussion.
Commodity agreements are agreements between countries to stabilize trade, supplies, and prices of commodities. They typically involve consensus on quantities traded, prices, and stock management. The objectives are to stimulate growth in developing countries and ensure predictable export earnings. Types of agreements include quota agreements, buffer stock agreements, and bilateral agreements. Examples provided are agreements for cocoa, coffee, tropical timber, sugar, rubber, tin, and wheat. While agreements aim to benefit participating countries, they can be challenging to implement and do not completely stabilize prices. The conclusion is that combinations of agreement types are most effective at controlling losses and stabilizing prices.
Regional economic integration refers to cooperation between countries in a particular region to reduce trade barriers and promote economic growth. There are various types of integration arrangements, ranging from free trade areas to economic unions. Free trade areas only remove barriers between members, while customs unions also implement common external trade policies. Common markets and economic unions involve deeper integration, including coordinated economic policies and movement of labor/capital. Regional integration can increase trade and investment opportunities, but may also divert trade away from non-member nations or cause disruptions as production and employment shifts between members.
egional economic integration
,
levels of economic integration
,
free trade area b) customs union c) common marke
,
the political case for regional integration
,
the economic case for regional integration
,
mercosur
,
regional economic integration in europe
,
evolution of the european union
,
impediments to integration
,
the case against regional integration
,
the andean community
,
classroom performance system
,
the north american free trade agreement
,
asia-pacific economic cooperation
,
regional economic integration elsewhere
,
regional trade blocs in africa
,
political structure of the european union
,
enlargement of the european union
,
the single european act
,
the establishment of the euro
,
central american common market and caricom
Wto,Regional blocs,International commodity agreement and global tradechinchuthomas249
The document discusses several topics related to global trade, including:
1) The World Trade Organization (WTO), which oversees global trade rules and settles disputes between members.
2) Regional trade blocs like the European Union, NAFTA, ASEAN, and SAARC which aim to reduce trade barriers between participating countries.
3) International commodity agreements which aim to stabilize prices of commodities like coffee, tea, and sugar through mechanisms like production quotas and buffer stocks.
4) An overview of global trade and some of its benefits like competitiveness and access to new technologies and markets.
This chapter discusses cross-national cooperation and agreements. It profiles the World Trade Organization and its role in determining global trade rules. It then examines different forms of regional economic integration like free trade agreements and customs unions. It analyzes the potential static and dynamic effects of integration, including trade creation and diversion. Major regional trading blocs like the European Union and North American Free Trade Agreement are then described in detail, including their historical development, organizational structure, and challenges.
Preferential trade agreements (PTAs) are trade pacts that reduce tariffs for member countries. PTAs are the first stage of economic integration, reducing trade barriers between participating nations. While they lower tariffs among members, external tariffs remain. PTAs can have benefits like trade creation, but also costs like trade diversion if members shift imports away from more efficient non-member producers. The proliferation of Asia-Pacific PTAs increases potential for both regional trade growth and trade diversion given some countries' high dispersed external tariffs.
Economic integration involves reducing trade barriers and coordinating economic policies between countries. It aims to lower costs for consumers and producers and increase trade. There are several levels of economic integration, from preferential trade areas with lower tariffs between members to customs unions with common external tariffs and common markets adding free movement of goods, services, capital and labor. The highest levels involve a common currency and centralized economic policies as in the European Union.
Economic integration and levels of integrationMahadi Hasan
The document discusses different levels of economic integration globally, including free trade areas, customs unions, common markets, economic unions, and political unions. It provides examples for each type of integration, such as NAFTA for a free trade area and the European Union as both an economic and political union. The highest level of integration is a political union, where members subordinate national political interests to a multistate organization.
The document discusses regional economic integration and different levels of integration between countries. It defines various types of integration agreements like preferential trade areas, free trade areas, customs unions, common markets, and economic unions. It explains that preferential trade areas provide lower trade barriers between member countries than with non-members, while free trade areas remove all trade barriers but maintain external barriers. Customs unions remove internal barriers and adopt a common external trade policy. Common markets allow free movement of goods, services, labor and capital. Economic unions require harmonized economic and fiscal policies along with a common currency. Regional integration can bring economic and political benefits like increased trade, investment, market size and cooperation, but may also result in trade diversion and shifts in employment.
This document provides an overview of regional economic integration agreements. It discusses the objectives of economic integration such as strengthening political ties and improving bargaining power. It describes different levels of integration from free trade areas to economic unions. Examples of regional agreements discussed include the European Union, NAFTA, MERCOSUR, and ASEAN. The EU eliminated trade barriers and allowed free movement of goods, services, and factors of production. NAFTA achieved trade liberalization between the US, Canada, and Mexico. Regional agreements in Latin America and Southeast Asia aimed to accelerate economic development among developing countries.
The document discusses the importance of knowledge of international business for management students. A student pursuing a management degree may find themselves placed in a foreign country after graduation, so understanding international business helps prepare them mentally for an unfamiliar environment abroad. Regional economic integration is also discussed as an important topic within an international business course.
Trade blocs and free trade agreements aim to reduce trade barriers between participating countries. The document discusses several trade blocs and agreements including OPEC, the European Economic Community, NAFTA, UNCTAD, and WTO agreements. It provides brief descriptions of the objectives and functions of these organizations. The document also lists some benefits and potential negatives of trade blocs and free trade agreements on international trade.
The document discusses economic integration, including its various forms and levels. It defines preferential trade agreements, free trade areas, customs unions, common markets, and economic unions. It also outlines some benefits of economic integration like increased trade and foreign investment. Examples of economic unions discussed include the European Union, NAFTA, EFTA, and APEC. Potential problems with integration are also noted, such as costs of a single currency and differences between member economies.
The document discusses regional economic integration and its various stages. It provides examples of major trade blocs like NAFTA, ASEAN, MERCOSUR, and the EU. The stages of integration range from free trade areas with no tariffs between members but individual external tariffs, to customs unions with unified external tariffs, to common markets that also allow free movement of capital and labor. Deeper integration involves common currencies and unified economic policies. Both trade creation and diversion effects as well as other advantages and disadvantages are discussed in relation to economic integration.
This chapter discusses global and regional economic integration, including the evolution of key organizations like the GATT and WTO. It outlines the objectives of studying this topic, such as understanding the advantages and disadvantages of economic integration efforts. Examples provided include NAFTA in North America and integration in Europe, Asia Pacific, and Africa. Debates are presented around whether regional integration helps or hinders broader global integration.
Regional Economic Integration (REI) refers to the commercial policy of discriminatively reducing or eliminating trade barriers only between the states joining together.
Regional economic groups eliminate or reduce trade tariffs (and other trade barriers) among the Partner States while maintaining tariffs or barriers for the rest of the world (non-member countries).
Geographical proximity, cultural, historical, and ideological similarities, competitive or complementary economic linkages, and a common language among the Partner States are importantly required for effective economic integration.
The aim of economic integration is to lessen costs for both consumers and producers, in addition to increase trade between the countries taking part in the agreement.
A primary economic objective of integration is to raise:
a) real output and income of the participants
&
b) rate of growth
by increasing specialization and competition by facilitating desirable structural (linkages) changes.
Economic integration involves reducing trade barriers between countries through international agreements or regional partnerships. The main approaches are multilateral cooperation under the WTO or smaller regional blocs. Integration provides benefits like increased trade opportunities and employment but can also divert trade away from non-member states. Deeper integration involves moving from preferential trade areas and free trade zones to customs unions and common markets with coordinated economic policies and freedom of movement. The European Union represents the most integrated model as both an economic and political union.
International trade policies deal with how national governments regulate imports and exports through measures like tariffs and quotas. India transitioned in the 1990s from a closed economy with high tariffs and restrictions to a more open one, increasing trade as a percentage of GDP. The objectives of trade policies are to both protect domestic industries but also optimize resources and benefit consumers through increased market access and trade.
Regional economic integration refers to agreements between countries in a geographic region to reduce trade barriers and promote free trade. There are different levels of economic integration ranging from free trade areas to political unions. The European Union is an example of an imperfect economic union working towards partial political union. NAFTA is a free trade area between the US, Canada, and Mexico that has both benefits and criticisms. Other regional trade blocs discussed include ASEAN, APEC, MERCOSUR, and proposals for a Free Trade Area of the Americas. Regional integration presents both opportunities and threats for international managers to consider.
The document provides an overview of regional economic integration efforts in Asia, North America, and Europe. It discusses several trade agreements and organizations, including the European Union, NAFTA, ASEAN, SAFTA, APEC, and SICA. The key points are:
1) The European Union has been the most developed model of regional integration but was shaken by the recent economic crisis.
2) Asia's existing free trade agreements are largely limited to tariff cuts and have barely addressed non-tariff barriers.
3) Asian regional integration is unlikely to come from top-down initiatives but from renewed unilateral liberalization beyond just border barriers.
This document discusses economic integration at three levels - global, regional, and bilateral. It outlines four stages of economic integration: free trade areas, customs unions, common markets, and economic unions. Free trade areas eliminate internal tariffs but maintain external tariffs, while customs unions have common external tariffs. Common markets integrate free movement of goods, services, capital and labor. Economic unions coordinate fiscal and monetary policy in addition to a common market. The document also covers some economic effects like trade creation and diversion, as well as issues like trade deflection and national sovereignty.
This document outlines the agenda for a class that discusses various economic integration agreements including ASEAN, EU, NAFTA, and WTO. It includes topics such as the history and development of these organizations, their key principles and agreements, benefits and challenges of economic integration, and case studies of specific integration regions. Students will learn about the member countries, institutions, and goals of integration bodies. They will also analyze trade data, barriers, and impacts of integration between countries and regions through group assignments, presentations, and discussion.
Commodity agreements are agreements between countries to stabilize trade, supplies, and prices of commodities. They typically involve consensus on quantities traded, prices, and stock management. The objectives are to stimulate growth in developing countries and ensure predictable export earnings. Types of agreements include quota agreements, buffer stock agreements, and bilateral agreements. Examples provided are agreements for cocoa, coffee, tropical timber, sugar, rubber, tin, and wheat. While agreements aim to benefit participating countries, they can be challenging to implement and do not completely stabilize prices. The conclusion is that combinations of agreement types are most effective at controlling losses and stabilizing prices.
Regional economic integration refers to cooperation between countries in a particular region to reduce trade barriers and promote economic growth. There are various types of integration arrangements, ranging from free trade areas to economic unions. Free trade areas only remove barriers between members, while customs unions also implement common external trade policies. Common markets and economic unions involve deeper integration, including coordinated economic policies and movement of labor/capital. Regional integration can increase trade and investment opportunities, but may also divert trade away from non-member nations or cause disruptions as production and employment shifts between members.
egional economic integration
,
levels of economic integration
,
free trade area b) customs union c) common marke
,
the political case for regional integration
,
the economic case for regional integration
,
mercosur
,
regional economic integration in europe
,
evolution of the european union
,
impediments to integration
,
the case against regional integration
,
the andean community
,
classroom performance system
,
the north american free trade agreement
,
asia-pacific economic cooperation
,
regional economic integration elsewhere
,
regional trade blocs in africa
,
political structure of the european union
,
enlargement of the european union
,
the single european act
,
the establishment of the euro
,
central american common market and caricom
Wto,Regional blocs,International commodity agreement and global tradechinchuthomas249
The document discusses several topics related to global trade, including:
1) The World Trade Organization (WTO), which oversees global trade rules and settles disputes between members.
2) Regional trade blocs like the European Union, NAFTA, ASEAN, and SAARC which aim to reduce trade barriers between participating countries.
3) International commodity agreements which aim to stabilize prices of commodities like coffee, tea, and sugar through mechanisms like production quotas and buffer stocks.
4) An overview of global trade and some of its benefits like competitiveness and access to new technologies and markets.
This chapter discusses cross-national cooperation and agreements. It profiles the World Trade Organization and its role in determining global trade rules. It then examines different forms of regional economic integration like free trade agreements and customs unions. It analyzes the potential static and dynamic effects of integration, including trade creation and diversion. Major regional trading blocs like the European Union and North American Free Trade Agreement are then described in detail, including their historical development, organizational structure, and challenges.
Preferential trade agreements (PTAs) are trade pacts that reduce tariffs for member countries. PTAs are the first stage of economic integration, reducing trade barriers between participating nations. While they lower tariffs among members, external tariffs remain. PTAs can have benefits like trade creation, but also costs like trade diversion if members shift imports away from more efficient non-member producers. The proliferation of Asia-Pacific PTAs increases potential for both regional trade growth and trade diversion given some countries' high dispersed external tariffs.
This document provides an overview of global and regional economic integration. It discusses the evolution of the GATT and WTO in promoting global integration through reducing trade barriers. It also describes different levels of regional integration like free trade areas, customs unions, and economic unions. Examples of regional integration efforts in Europe, North America, South America, Asia, Australia/New Zealand, and Africa are outlined. Potential debates around regional integration being building blocks or stumbling blocks to global integration, and the effectiveness of the WTO, are also mentioned.
Project on trade blocs and trade barriersKiran Joshi
1. The document discusses trade blocs, which are agreements between countries to reduce trade barriers and promote trade within the bloc.
2. It provides examples of major trade blocs like the European Union, NAFTA, SAARC, and OPEC.
3. The objectives of trade blocs are outlined as removing trade restrictions, improving relations, encouraging resource sharing, establishing collective bargaining, and promoting economic growth among member nations.
The document discusses various international and regional trade organizations and agreements. It provides an overview of the General Agreement on Tariffs and Trade (GATT), including its origins and achievements. It then summarizes the World Trade Organization (WTO), including its objectives and core agreements on trade-related investment measures, intellectual property, and other issues. Several regional trade blocs and agreements are also summarized such as the European Union, North American Free Trade Agreement, Association of Southeast Asian Nations Free Trade Area, and others.
In a highly competitive global world, mastering international business administration is becoming necessary for managers worldwide to successfully perform diverse business activities with other parties in different countries.
Lecture no. 17 world trade organization and regional trade agreementDildar Ali
The document discusses various trade organizations and agreements including:
- The General Agreement on Tariffs and Trade (GATT) which was established in 1947 and became the World Trade Organization (WTO) in 1995.
- Important rounds of GATT negotiations including the Kennedy, Tokyo, and Uruguay rounds which established the WTO and expanded trade rules.
- Regional trade agreements like the North American Free Trade Agreement (NAFTA) between the US, Canada, and Mexico, and proposals for further agreements in other regions.
- Other existing regional organizations and trade blocs in Asia (ASEAN), South America (Mercosur), the Caribbean (CARICOM), and former Soviet states (CIS).
Absolute advantage, world trade organization(WTO), Exim policy, ASEANmanikanta malla
Here are the key points about ASEAN:
- ASEAN was founded on August 8, 1967 in Bangkok, Thailand by the five original member countries - Indonesia, Malaysia, Philippines, Singapore, and Thailand.
- It was established to promote economic, political, and security cooperation among its members.
- The founding principles include mutual respect for sovereignty, non-interference in internal affairs, and the right of every member state to lead its national existence free from external interference.
- Over the years, ASEAN has expanded to include 10 member countries - the five original members plus Brunei, Vietnam, Laos, Myanmar, and Cambodia.
- ASEAN aims to accelerate economic growth and social progress in the
The document discusses different levels of economic integration between countries including free trade areas, customs unions, common markets, economic unions, and political unions. It provides examples of economic integrations in different regions: the European Union integrating most of Western Europe, NAFTA integrating Canada, Mexico, and the US, Mercosur integrating South American countries, ASEAN and APEC in Asia, and economic communities in Africa. The goals are generally to reduce barriers to trade and movement of goods, services, and factors of production to promote regional economic cooperation and growth.
The document discusses the history and evolution of international trade organizations from GATT to the modern World Trade Organization (WTO). It describes how GATT was established in 1947 to promote global free trade but lacked enforcement capabilities. Key points include:
- GATT negotiations led to trade liberalization but favored developed nations.
- The WTO was established in 1995 to replace GATT and provide stronger rules and a dispute resolution process.
- The WTO aims to facilitate trade through policies like most favored nation status and reducing tariffs and barriers.
- Regional trade agreements also proliferated like NAFTA, ASEAN, and the EU to liberalize trade among neighboring states.
The document discusses the history and evolution of international trade organizations from GATT to the modern World Trade Organization (WTO). It describes how GATT was established in 1947 to promote global free trade but lacked enforcement capabilities. Key points include:
- GATT negotiations led to trade liberalization but favored developed nations.
- The WTO was established in 1995 to replace GATT and provide stronger rules and a dispute resolution process.
- The document also outlines important regional trade agreements like NAFTA, ASEAN, and EU/US negotiations on T-TIP.
- Both global and regional approaches aim to reduce trade barriers but have different impacts on developed vs. developing economies.
The document provides information on the history and development of the World Trade Organization (WTO) and various regional trading blocs. It discusses how the WTO was established in 1995 as the successor to the General Agreement on Tariffs and Trade (GATT) and outlines some of the WTO's main activities. It also summarizes four major regional trading blocs - the European Union, ASEAN, Mercosur, and NAFTA - and provides some key details about their founding, goals, and membership.
Globalization has increased dramatically in recent decades due to reductions in trade barriers and advances in technology and transportation. The World Trade Organization aims to help producers conduct cross-border business through agreements reducing trade barriers. While globalization offers economic benefits through increased productivity and innovation, it also poses challenges as many workers face job losses or pay cuts due to overseas competition and outsourcing. International standards like IFRS and agreements like NAFTA, CAFTA, and the WTO play important roles in facilitating global business and trade.
Free trade areas (FTAs) are agreements between countries to reduce or eliminate tariffs and other trade barriers on most goods and services traded between the member countries. FTAs have increased rapidly since the second half of the 20th century as countries seek to exploit comparative advantages and expand export markets. The largest FTA is the European Union, which began with 6 countries and has expanded to 15 members, 11 of which use the euro. Other major FTAs include NAFTA between the US, Canada, and Mexico, as well as agreements being negotiated for the Asia-Pacific region and South America. While FTAs provide economic benefits, they also face opposition from those concerned about loss of domestic jobs or unfair competitive advantages between members and
The World Trade Organization (WTO) is an intergovernmental organization that regulates international trade. It was established in 1995 to oversee and liberalize international trade flows. The WTO aims to help producers conduct business freely and predictably while providing a forum for negotiating trade agreements and settling disputes between members. It has over 160 member countries representing over 98% of world trade. The WTO agreements cover trade in goods, services, and intellectual property, with the goal of promoting economic growth and development.
The document discusses GATT (General Agreement on Tariffs and Trade), the WTO (World Trade Organization), and regional trading blocs. It provides background on GATT, including its founding in 1947 with 23 members and purpose of reducing tariffs. It then discusses the establishment of the WTO in 1995 to replace GATT and regulate international trade. Finally, it examines some major regional trading blocs like the European Union, NAFTA, ASEAN, SAARC, and SAFTA, providing brief overviews of their history, members, and objectives in promoting regional economic integration and trade.
The document discusses the General Agreement on Tariffs and Trade (GATT) from 1948 to 1994 and its replacement by the World Trade Organization (WTO) in 1995. GATT was created in 1947 to promote international trade and reduce trade barriers. It established principles like non-discrimination between trading partners. The WTO was established in 1995 after the Uruguay Round negotiations to provide clearer rules and a stronger dispute settlement system. It now has 160 member countries and aims to liberalize trade through negotiated agreements.
The document provides information on various forms of cross-national cooperation and economic agreements between countries, including:
1) Bilateral, regional, and global integration agreements that give preference to member countries.
2) International organizations like the WTO and regional groups in Europe (EU, EFTA), Asia (ASEAN, APEC, SAARC, GCC), and Africa (SADC, COMESA) that aim to reduce trade barriers and foster economic cooperation.
3) Examples of regional economic communities like the EU that have advanced from free trade areas to customs unions and common markets with coordinated economic and political policies.
181 Chapter 6Supranational Organizations and Intern.docxaulasnilda
181
Chapter 6
Supranational Organizations
and International Institutions
“Mankind always takes up only such problems as it thinks it can solve.”
—Albert O. Hirschman
Chapter ObjeCtives
this chapter will:
• Identify major international trade organizations, such as the World Trade
Organization and the United Nations Conference on Trade and Development,
and the roles they play in shaping the international business environment
• Describe the major financial institutions, such as the World Bank and
the International Finance Corporation, and the assistance they provide in
channeling financial resources to developing countries
• Review the growth of regional financial institutions and their important
positions as providers of financial resources
BaCkground
Increasing economic, financial, and commercial interdependence among nations of the
world after World War II created a need to coordinate international action and policies
to secure the smooth flow of trade. Apart from regular, periodic meetings of officials
and business leaders from different countries, these nations recognized a need for the
establishment of permanent organizations to provide stability and continuity to the
process of international economic interchange. Some supranational bodies were set
up in the period immediately following World War II, while more were established
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AN: 929355 ; Ajami, Riad A., Goddard, G. Jason.; International Business : Theory and Practice
Account: s8987890.main.ehost
182 Chapter 6 • Supranational Organizations and International Institutions
in the following decades. Two major categories of international organizations can be
identified as those having a global focus and those set up to meet the needs of particular
regions.
general agreeMent on tariFFs and trade
The General Agreement on Tariffs and Trade (GATT) was established initially as
a temporary measure to reduce trade barriers among its founding members. Since its
inception in 1947, GATT evolved into a permanent body to include most industrial and
developing countries, excluding those of the socialist bloc.
GATT was originally established to avoid the kind of competitive protectionism
that had plagued international trade in the period between the two world wars, which
was reflected in high tariff barriers and a major slump in trade volumes. The objectives
of GATT—liberalization of international trade restrictions and the lowering of tariff
barriers—were to be achieved by multilateral negotiations and voluntarily agreed-upon
rules of conduct. As a permanent international body, GAT ...
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2. Learning Objectives
To identify the major characteristics and
challenges of the World Trade Organization
To describe the static and dynamic impact of
trade agreements on trade and investment flows
To describe other forms of global cooperation
such as the United Nations and OPEC
3. Case: Walmart goes south
The North American Free Trade created in
1994 affected Wal -Mart`s success in
Mexico in three specific ways. Wal-Mart
had a marketing campaign where it
offered “Every Day Low Prices”, but this
was not quite true in Mexico because it
had significant import charges on many of
the products brought from the U.S.
4. After the implementation of NAFTA,
Mexico became a free trade zone. This
made it possible for Wal- Mart to reduce
its tariff from 10% to 3 %.
This led the government to solve the
logistical problem due to the fact that
Mexico`s transportation system was below
average.
5. NAFTA encourages Mexico to improve the
transportation system, which lowers the
logistical cost. Additionally, NAFTA allows
foreign investment in Mexico. As a result,
Wal-Mart was able to build manufacturing
plants in Mexico because of the cheap
labor.
6. In this particular case we can observe how
low labor cost contributes to obtain low
import tariffs therefore leads to cheaper
products. Wal-Mart`s success in Mexico
was definitely possible because of the
NAFTA implementation.
7. Introduction
Economic integration
the political and monetary agreements among
nations and world regions in which preference
is given to member countries
Bilateral integration
Regional integration
Global integration
8. The World Trade Organization
World Trade Organization (WTO)
The major body for
reciprocal trade negotiations
enforcement of trade agreements
General Agreement on Tariffs and
Trade (GATT)
9. GATT: Predecessor to the WTO
GATT
formed in 1947 to abolish quotas and reduce
tariffs
Most favored nation (MFN) clause
trade without discrimination
Succeeded by WTO in 1995
10. What Does The WTO Do?
WTO
continues the MFN clause of GATT
provides a mechanism for dispute settlement
Doha Round
agricultural subsidies
Criticized for
failing to pay enough attention to labor and
environmental concerns
undermining global diversity
benefitting rich at the expense of the poor
11. The Rise Of
Bilateral Agreements
Bilateral agreements
can be between two individual countries or can
involve one country dealing with a group of
other countries
Also known as
Preferential trade agreements (PTAs)
Free trade agreements (FTAs)
12. Regional Economic Integration
Regional trade agreements
integration confined to a region and involving
more than two countries
Examples include
European Union (EU)
European Free Trade Area (EFTA)
North American Free Trade Area (NAFTA)
Association of Southeast Asian Nations
(ASEAN)
Common Market of Eastern and Southern
Africa (COMESA)
13. Regional Economic Integration
Major types of economic integration
Free trade area
no internal tariffs
Customs union
no internal tariffs plus common external
tariffs
Common market
customs union plus factor mobility
14. The Effects Of Integration
Effects of regional integration
Static effects
trade creation
trade diversion
Dynamic effects
Economies of scale
16. Data of RTAs
https://www.wto.org/english/tratop_e/regi
on_e/regfac_e.htm
17. The European Union
European Union (EU)
changed from the European Economic
Community to the European Community to the
European Union
the largest and most successful regional trade
group in the world
provides free trade of goods, capital, and
people
uses common external tariffs
has a common currency
18. The European Union
European Commission
provides political leadership, drafts laws, and
runs the various daily programs of the EU
Council of the EU
composed of the heads of state of each
member country
European Parliament
has legislative power, control over the budget,
and is supervisor of executive decisions
European Court of Justice
interprets and applies EU treaties
19. The European Union
Companies doing business in the EU need
to
determine where to produce products
determine what their entry strategy will be
balance the commonness of the EU with
national differences
20. EU Trade data
http://trade.ec.europa.eu/doclib/docs/200
6/september/tradoc_122530.pdf
21. NAFTA
The North American Free Trade Agreement
(NAFTA)
includes Canada, the U.S., and Mexico
involves free trade in goods, services, and investments
includes countries of different sizes and wealth
Some U.S. trade and investment has been
diverted to Mexico
Free trade area
rules of origin
22. NAFTA
Regional content
at least 50% of the net cost of most products
must come from the NAFTA region
Additional provisions
Workers rights
The environment
Dispute resolution mechanism
23. NAFTA Trade data
http://globaledge.msu.edu/trade-
blocs/nafta/statistics
24. Regional Economic Integration
In The Americas
There are six major regional economic
groups in the Americas
Caribbean Community (CARICOM)
Central American Common Market (CACM)
Central American Free Trade Agreement
(CAFTA –DR)
Andean Community (CAN)
Southern Common Market (MERCOSUR)
Latin American Integration Association
(LAIA)
27. Regional Economic Integration
In Asia
Regional integration in Asia includes
the Association of Southeast Asian
Nations (ASEAN)
ASEAN Free Trade Area
the Asia Pacific Economic Cooperation
(APEC)
open regionalism
29. Regional Economic Integration
In Africa
Several efforts at economic integration
exist
Pan Arab Free Trade Area (PAFTA)
Arab League
Gulf Cooperation Council (GCC)
African Union (AU)
31. Other Forms Of
International Cooperation
The United Nations (UN)
established in 1945
promotes peace and security
UNCTAD
helps developing countries participate in
international trade
Nongovernmental Organizations (NGOs)
private, nonprofit institutions that are
independent of the government
32. Commodities
And The World Economy
Commodities
raw materials or primary products that enter
into trade
Many commodity agreements exist to
discuss issues
disseminate information
improve product safety
OPEC
33. Organization Of The Petroleum
Exporting Countries
OPEC
producer cartel that relies on quotas to
influence prices
establishes production quotas for member
countries
Saudi Arabia
produces about 42% of the world’s crude
and18% of its natural gas
Downside of high prices
incentive to invest in non-OPEC countries
balancing social, political, and economic
objectives
34. The Future: Regional
Integration And The WTO
Regional integration could help the WTO
Regionalism can lead to liberalization of issues
not covered by the WTO
Regionalism is more flexible
Regional deals lock in liberalization
Editor's Notes
Chapter 8: Cross National Cooperation and Agreements
The Learning Objectives for this chapter are
To identify the major characteristics and challenges of the World Trade Organization
To discuss the pros and cons of global, bilateral, and regional integration
To describe the static and dynamic impact of trade agreements on trade and investment flows
To define different forms of regional economic integration
To compare and contrast different regional trading groups
To describe other forms of global cooperation such as the United Nations and OPEC
Trade groups influence the strategies of multinational companies so it’s important to understand economic integration and its scope. The are three types of economic integration.
At the bilateral level two countries decide to cooperate more closely. At the regional level, a group of countries located in the same geographic area cooperate. At the global level, countries from all over the world cooperate through the World Trade Organization.
The World Trade Organization, or WTO, encompasses and extends the General Agreement on Tariffs and Trade, also known as GATT.
The GATT was formed by 23 countries in 1947 as mechanism for negotiating the reduction and elimination of trade barriers and for agreeing on the conduct of international trade. The central tenet of GATT was the MFN clause that required members to open their markets equally to all other members.
The WTO, which has 153 members, follows the MFN principle of GATT and strives to provide a better means of mediating trade disputes and of enforcing agreements.
The WTO does make some exceptions to the MFN principle. For example, developing countries’ manufactured products have been given preferential treatment over those from industrial countries, concessions granted to members within a regional trading alliance, such as the EU, have not been extended to countries outside the alliance, and countries are permitted to raise barriers against member countries which they feel are trading unfairly.
The most recent set of negotiations for the WTO began in 2001 in Doha, Qatar. The Doha Round, which focuses on giving a boost to developing nations, has been challenging and has stalled numerous times. One of the major sources of tension involves agricultural subsidies.
The WTO has been the subject of much criticism in the past.
Countries are increasingly willing to sidestep the multilateral system and engage in bilateral agreements in order to achieve their objectives.
Regional trade agreements or RTAs, also known preferential trade agreements, give member countries special treatment. They began to emerge after World War II when nations saw the benefits of cooperation and larger market sizes.
The major types if economic integration are the free trade area, the customs union, and the common market.
Regional economic integration has social, cultural, political, and economic effects.
The static effects of integration are the shifting of resources from inefficient to efficient companies as trade barriers fall.
Static effects can develop when there is trade creation or trade diversion. Trade creation occurs when production shifts to more efficient producers for reasons of comparative advantage, while trade diversion occurs when trade shifts to countries in the group at the expense of trade with countries not in the group.
Static effects improve the efficiency of resource allocation and affect both production and consumption.
Dynamic effects of integration are the overall growth in the market and the impact on a company caused by expanding production and by the company’s ability to achieve greater economies of scale.
Economies of scale occur when the average cost per unit falls as the number of units produced rises.
Keep in mind that regional economic integration allows for specialization and trade based on comparative advantage.
.
This Figure shows the impact of free trade agreements.
It’s much easier to form regional trading groups than larger ones. One of the most comprehensive and successful regional groups is the European Union which began as a free trade agreement and has since expanded to become a common market that has abolished restrictions on factor mobility and harmonized national, political, economic, and social policies.
The EU has 27 members some of which have joined forces on the bloc’s common currency, the euro.
Companies need to understand the political environment in the European Union. It has many governing bodies including the European Commission, the Council of the European Union, the European Parliament, the European Court of Justice, and the European Central Bank.
Multinationals need to understand how the EU can influence their corporate strategy. For example, should they produce in a central location and incur the cost and time to move products from country to country? Should they acquire a local company as a way to get into the market? What do the different growth rates across member countries mean?
The North American Free Trade Area, or NAFTA, went into effect in 1994, and is the largest bilateral trade agreement in the world. It’s designed to eliminate tariff barriers and liberalize investment opportunities and trade in services. Today, the U.S. is Mexico’s and Canada’s largest trading partner.
Under the rules of origin provision of NAFTA, goods and services must originate in North America to get access to lower tariffs.
NAFTA lays out various regional content rules that must be met in order to qualify for preferential treatment. In particular, for a product to be considered North American in terms of country of origin, at least 50 percent of the value of most products must be from North America.
NAFTA also addresses several other areas, notably workers rights and the environment. The agreement, for example, includes certain labor standards such as the right to unionize as well as upgraded environmental standards in Mexico.
Since NAFTA was signed, trade and investment have increased significantly. In fact, many companies look at it as one big regional market, and have been able to take advantage of trade agreements each country has with other nations as well. Moreover, demand in Mexico continues to rise, thanks in part to the creation of new jobs in the country, and more competitive companies. Keep in mind though, that challenges remain. One key issue today is illegal immigration.
There are six major regional groups in the Americas. The success of each group varies. CARICOM is modeling its agreement after the EU. MERCOSUR is at the customs union level. The Andean Community, while one of the oldest regional economic groups, has yet to successfully achieve its goals. Similarly, the Latin American Integration Association is still struggling to achieve its objectives.
This Map shows the countries belonging to CACM, CARICOM, and CAFTA-DR.
This Map shows the members of CAN, MERCOSUR, and LAIA.
ASEAN is the fourth largest free trade area in the world. While the ASEAN free trade area has been very successful, other efforts in the region have not.
APEC for example, has had less success in achieving its goals. The group is not only large and geographically distant, it also lacks a treaty. However, because it generates such a large percentage of the world’s output and merchandise trade, it’s potential is large. A key goal for the bloc is to establish open regionalism whereby member countries decide whether to apply trade liberalization to non-APEC countries on an unconditional MFN basis or on a reciprocal FTA basis.
This Map shows the members of ASEAN.
The large number of nations combined with the region’s three monetary unions and five regional trade associations make things complex when it comes to economic integration in Africa. Several African trade groups have been established, however, they rely more on their former colonial powers and other developed markets for trade than they do on each other.
This Map shows efforts at economic integration in Africa.
Other forms of cooperation can also influence the strategies of multinationals.
The United Nations focuses on economic development, antiterrorism, and humanitarian movements. One organization in the UN is the United Nations Conference on Trade and Development, or UNCTAD. NGOs like the Red Cross and Doctors without Borders focus on humanitarian issues, while others like Africa Now and Save the Children focus on workers’ rights.
Developing countries frequently rely on commodity exports for the hard currency they need for economic development. If commodity prices aren’t stable, then earnings aren’t stable either.
To try to ensure greater stability in commodity prices, various agreements have been established. Most haven’t been very successful, but one, OPEC, has been.
OPEC has been successful in terms of attempting to stabilize supply and price, but member countries often cheat in order to produce more revenues, and outside events like the civil war in Libya can interfere with the group’s objectives.
Will regional integration be the wave of the future, or will the WTO become the focus of global economic integration? The answer is that regional integration might actually help the WTO achieve its goals.