International trade allows countries to specialize and gain from exporting goods they produce cheaply while importing goods from other countries that produce them cheaply. There are direct benefits like increased income and indirect benefits like technology transfer. However, international trade can also negatively impact poorer countries if it prices out their domestic industries or leads to deterioration in their terms of trade. Trade agreements and economic integration aim to liberalize trade but have both costs and benefits that are debated. Governments use policies like tariffs and quotas to protect domestic industries from foreign competition and further other goals. Regional economic integration involves countries reducing barriers to create free trade areas, customs unions, common markets or unions with deeper coordination of economic policies.
Theoretical Part Topics:
1. Introduction to International Trade
2. Trade Barrier & Imperfect Competition
3. Trade Body, Trade Law and Product introduction
4. World Apparel Market and BDG RMG Sector
5. Market and Demand Analysis
6. World Market analysis and Potentialities
7. Introduction to Marketing and Export Promotion
8. Communication Strategy
9. Process of Export and Import
International trade is distorted by countries applying tariff and non tariff trade barriers.
Want more FREE resources? Checkout the B2B Whiteboard youtube channel:
www.youtube.com/b2bwhiteboard
Or join us on Facebook today: www.facebook.com/b2bwhiteboard
Theoretical Part Topics:
1. Introduction to International Trade
2. Trade Barrier & Imperfect Competition
3. Trade Body, Trade Law and Product introduction
4. World Apparel Market and BDG RMG Sector
5. Market and Demand Analysis
6. World Market analysis and Potentialities
7. Introduction to Marketing and Export Promotion
8. Communication Strategy
9. Process of Export and Import
International trade is distorted by countries applying tariff and non tariff trade barriers.
Want more FREE resources? Checkout the B2B Whiteboard youtube channel:
www.youtube.com/b2bwhiteboard
Or join us on Facebook today: www.facebook.com/b2bwhiteboard
A Theoretical Framework (Modelling) for International Business ManagementYasmin AbdelAziz
The international framework with all the institutions and organisations
that determine country’s economic and support policy in emergent situations.
2. Impact of globalisation on international and national policy and activities. 3. The
national framework, which fairly complicated because there are many active players:
a) National economic policy: understanding it and the environment for trade
activities. b) National economic structure and competiveness of the domestic
companies. c) International management capacities. d) Local or regional environment
and conditions for the companies. e) Focus on the world market conditions and their
development
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.
international business
,
what is culture
,
values andnorms
,
culture
,
society
,
and the nation-state
,
hofstede’s cultural dimensions in dubai
,
spoken language
,
individuals and groups
,
cultural dimensions in germany
,
cultural dimensions in china
,
cultural dimensions in india
,
cultural dimensions in england
,
social structure
,
religious and ethical systems
,
islam
,
implications for managers
The Global
Economic
Environment
1
Interesting The Guardian story about Italy that combines Culture (population) + Political (govt business subsidies) + Economic environments
https://www.theguardian.com/world/2019/sep/11/underpopulated-italian-region-molise
Global Economic Environment
1 of 2
International Trade Theory
firms expanding internationally must appreciate how their international activities match with a country’s goals for international trade
Balance of Payments
a leading indicator of the international economic health of a country and may directly influence a firm’s expansion decisions https://tradingeconomics.com/united-states/balance-of-trade
Government Policy and Trade
firms are directly impacted by government policies in areas such as tariffs and non-tariff barriers
3
Global Economic Environment
2 of 2
Institutions in the World Economy
institutions such as the World Trade Organization and the World Bank greatly influence trade policies, and ultimately can influence a firm’s global strategy
Regional Economic Integration
firms generally benefit from economic integration through lower costs of doing business. However it can also lead to stronger competitors
4
International Trade Theory
Why do nations trade?
Key international trade theories:
Absolute Advantage and Comparative Advantage
Product Life Cycle – Trade patterns and production over time
5
Comparative Advantage
“Different countries have dissimilar prices and costs on goods because different goods require a different mix of factors in their production and because countries differ in their supply of these factors.” (Ohlin)
e.g., Can you grow salmon in Texas?
6
Product Life Cycle
Four Phases of the Product Life Cycle:
Phase 1: the U.S. exports the product
Phase 2: foreign production starts
Phase 3: foreign production becomes competitive in export markets
Phase 4: import competition begins
The Product Life Cycle may not explain trade and production patterns as well anymore due to:
Short gap between phases
“Born globals” may skip some phases
7
Product Life Cycle
1 of 3
Developed Nation (strong economy)
Produces more than consumes at the beginning, then a switch
8
Product Life Cycle
2 of 3
Emerging Nation
Consumes more than produces at the beginning, then a switch
9
The Consumer PLC
Extending a Product in Other Markets
Balance of Payments 1 of 2
The Balance of Payments (BOP) is a summary of a country's economic transactions w/the world, for a specified period of time.
Current Account
Goods (Merchandise)
Services
Unilateral Transfers
http://www.bea.gov/newsreleases/glance.htm
http://tse.export.gov/TSE/
https://economictimes.indiatimes.com/markets/forex/indian-rupee-hits-an-all-time-low-of-72-69-versus-us-dollar/videoshow/65769296.cms
11
U.S. Imports
vs. Exports
https://tradingeconomics.com/united-states/balance-of-trade
Financial considerations
Reflects a country’s solvency/economic health
Steady loss of foreign exch.
NO1 Uk Rohani Baba In Karachi Bangali Baba Karachi Online Amil Baba WorldWide...Amil baba
Contact with Dawood Bhai Just call on +92322-6382012 and we'll help you. We'll solve all your problems within 12 to 24 hours and with 101% guarantee and with astrology systematic. If you want to take any personal or professional advice then also you can call us on +92322-6382012 , ONLINE LOVE PROBLEM & Other all types of Daily Life Problem's.Then CALL or WHATSAPP us on +92322-6382012 and Get all these problems solutions here by Amil Baba DAWOOD BANGALI
#vashikaranspecialist #astrologer #palmistry #amliyaat #taweez #manpasandshadi #horoscope #spiritual #lovelife #lovespell #marriagespell#aamilbabainpakistan #amilbabainkarachi #powerfullblackmagicspell #kalajadumantarspecialist #realamilbaba #AmilbabainPakistan #astrologerincanada #astrologerindubai #lovespellsmaster #kalajaduspecialist #lovespellsthatwork #aamilbabainlahore#blackmagicformarriage #aamilbaba #kalajadu #kalailam #taweez #wazifaexpert #jadumantar #vashikaranspecialist #astrologer #palmistry #amliyaat #taweez #manpasandshadi #horoscope #spiritual #lovelife #lovespell #marriagespell#aamilbabainpakistan #amilbabainkarachi #powerfullblackmagicspell #kalajadumantarspecialist #realamilbaba #AmilbabainPakistan #astrologerincanada #astrologerindubai #lovespellsmaster #kalajaduspecialist #lovespellsthatwork #aamilbabainlahore #blackmagicforlove #blackmagicformarriage #aamilbaba #kalajadu #kalailam #taweez #wazifaexpert #jadumantar #vashikaranspecialist #astrologer #palmistry #amliyaat #taweez #manpasandshadi #horoscope #spiritual #lovelife #lovespell #marriagespell#aamilbabainpakistan #amilbabainkarachi #powerfullblackmagicspell #kalajadumantarspecialist #realamilbaba #AmilbabainPakistan #astrologerincanada #astrologerindubai #lovespellsmaster #kalajaduspecialist #lovespellsthatwork #aamilbabainlahore #Amilbabainuk #amilbabainspain #amilbabaindubai #Amilbabainnorway #amilbabainkrachi #amilbabainlahore #amilbabaingujranwalan #amilbabainislamabad
how to sell pi coins in all Africa Countries.DOT TECH
Yes. You can sell your pi network for other cryptocurrencies like Bitcoin, usdt , Ethereum and other currencies And this is done easily with the help from a pi merchant.
What is a pi merchant ?
Since pi is not launched yet in any exchange. The only way you can sell right now is through merchants.
A verified Pi merchant is someone who buys pi network coins from miners and resell them to investors looking forward to hold massive quantities of pi coins before mainnet launch in 2026.
I will leave the telegram contact of my personal pi merchant to trade with.
@Pi_vendor_247
what is the future of Pi Network currency.DOT TECH
The future of the Pi cryptocurrency is uncertain, and its success will depend on several factors. Pi is a relatively new cryptocurrency that aims to be user-friendly and accessible to a wide audience. Here are a few key considerations for its future:
Message: @Pi_vendor_247 on telegram if u want to sell PI COINS.
1. Mainnet Launch: As of my last knowledge update in January 2022, Pi was still in the testnet phase. Its success will depend on a successful transition to a mainnet, where actual transactions can take place.
2. User Adoption: Pi's success will be closely tied to user adoption. The more users who join the network and actively participate, the stronger the ecosystem can become.
3. Utility and Use Cases: For a cryptocurrency to thrive, it must offer utility and practical use cases. The Pi team has talked about various applications, including peer-to-peer transactions, smart contracts, and more. The development and implementation of these features will be essential.
4. Regulatory Environment: The regulatory environment for cryptocurrencies is evolving globally. How Pi navigates and complies with regulations in various jurisdictions will significantly impact its future.
5. Technology Development: The Pi network must continue to develop and improve its technology, security, and scalability to compete with established cryptocurrencies.
6. Community Engagement: The Pi community plays a critical role in its future. Engaged users can help build trust and grow the network.
7. Monetization and Sustainability: The Pi team's monetization strategy, such as fees, partnerships, or other revenue sources, will affect its long-term sustainability.
It's essential to approach Pi or any new cryptocurrency with caution and conduct due diligence. Cryptocurrency investments involve risks, and potential rewards can be uncertain. The success and future of Pi will depend on the collective efforts of its team, community, and the broader cryptocurrency market dynamics. It's advisable to stay updated on Pi's development and follow any updates from the official Pi Network website or announcements from the team.
What price will pi network be listed on exchangesDOT TECH
The rate at which pi will be listed is practically unknown. But due to speculations surrounding it the predicted rate is tends to be from 30$ — 50$.
So if you are interested in selling your pi network coins at a high rate tho. Or you can't wait till the mainnet launch in 2026. You can easily trade your pi coins with a merchant.
A merchant is someone who buys pi coins from miners and resell them to Investors looking forward to hold massive quantities till mainnet launch.
I will leave the telegram contact of my personal pi vendor to trade with.
@Pi_vendor_247
Falcon stands out as a top-tier P2P Invoice Discounting platform in India, bridging esteemed blue-chip companies and eager investors. Our goal is to transform the investment landscape in India by establishing a comprehensive destination for borrowers and investors with diverse profiles and needs, all while minimizing risk. What sets Falcon apart is the elimination of intermediaries such as commercial banks and depository institutions, allowing investors to enjoy higher yields.
Turin Startup Ecosystem 2024 - Ricerca sulle Startup e il Sistema dell'Innov...Quotidiano Piemontese
Turin Startup Ecosystem 2024
Una ricerca de il Club degli Investitori, in collaborazione con ToTeM Torino Tech Map e con il supporto della ESCP Business School e di Growth Capital
If you are looking for a pi coin investor. Then look no further because I have the right one he is a pi vendor (he buy and resell to whales in China). I met him on a crypto conference and ever since I and my friends have sold more than 10k pi coins to him And he bought all and still want more. I will drop his telegram handle below just send him a message.
@Pi_vendor_247
NO1 Uk Black Magic Specialist Expert In Sahiwal, Okara, Hafizabad, Mandi Bah...Amil Baba Dawood bangali
Contact with Dawood Bhai Just call on +92322-6382012 and we'll help you. We'll solve all your problems within 12 to 24 hours and with 101% guarantee and with astrology systematic. If you want to take any personal or professional advice then also you can call us on +92322-6382012 , ONLINE LOVE PROBLEM & Other all types of Daily Life Problem's.Then CALL or WHATSAPP us on +92322-6382012 and Get all these problems solutions here by Amil Baba DAWOOD BANGALI
#vashikaranspecialist #astrologer #palmistry #amliyaat #taweez #manpasandshadi #horoscope #spiritual #lovelife #lovespell #marriagespell#aamilbabainpakistan #amilbabainkarachi #powerfullblackmagicspell #kalajadumantarspecialist #realamilbaba #AmilbabainPakistan #astrologerincanada #astrologerindubai #lovespellsmaster #kalajaduspecialist #lovespellsthatwork #aamilbabainlahore#blackmagicformarriage #aamilbaba #kalajadu #kalailam #taweez #wazifaexpert #jadumantar #vashikaranspecialist #astrologer #palmistry #amliyaat #taweez #manpasandshadi #horoscope #spiritual #lovelife #lovespell #marriagespell#aamilbabainpakistan #amilbabainkarachi #powerfullblackmagicspell #kalajadumantarspecialist #realamilbaba #AmilbabainPakistan #astrologerincanada #astrologerindubai #lovespellsmaster #kalajaduspecialist #lovespellsthatwork #aamilbabainlahore #blackmagicforlove #blackmagicformarriage #aamilbaba #kalajadu #kalailam #taweez #wazifaexpert #jadumantar #vashikaranspecialist #astrologer #palmistry #amliyaat #taweez #manpasandshadi #horoscope #spiritual #lovelife #lovespell #marriagespell#aamilbabainpakistan #amilbabainkarachi #powerfullblackmagicspell #kalajadumantarspecialist #realamilbaba #AmilbabainPakistan #astrologerincanada #astrologerindubai #lovespellsmaster #kalajaduspecialist #lovespellsthatwork #aamilbabainlahore #Amilbabainuk #amilbabainspain #amilbabaindubai #Amilbabainnorway #amilbabainkrachi #amilbabainlahore #amilbabaingujranwalan #amilbabainislamabad
how to swap pi coins to foreign currency withdrawable.DOT TECH
As of my last update, Pi is still in the testing phase and is not tradable on any exchanges.
However, Pi Network has announced plans to launch its Testnet and Mainnet in the future, which may include listing Pi on exchanges.
The current method for selling pi coins involves exchanging them with a pi vendor who purchases pi coins for investment reasons.
If you want to sell your pi coins, reach out to a pi vendor and sell them to anyone looking to sell pi coins from any country around the globe.
Below is the contact information for my personal pi vendor.
Telegram: @Pi_vendor_247
when will pi network coin be available on crypto exchange.DOT TECH
There is no set date for when Pi coins will enter the market.
However, the developers are working hard to get them released as soon as possible.
Once they are available, users will be able to exchange other cryptocurrencies for Pi coins on designated exchanges.
But for now the only way to sell your pi coins is through verified pi vendor.
Here is the telegram contact of my personal pi vendor
@Pi_vendor_247
how to sell pi coins in South Korea profitably.DOT TECH
Yes. You can sell your pi network coins in South Korea or any other country, by finding a verified pi merchant
What is a verified pi merchant?
Since pi network is not launched yet on any exchange, the only way you can sell pi coins is by selling to a verified pi merchant, and this is because pi network is not launched yet on any exchange and no pre-sale or ico offerings Is done on pi.
Since there is no pre-sale, the only way exchanges can get pi is by buying from miners. So a pi merchant facilitates these transactions by acting as a bridge for both transactions.
How can i find a pi vendor/merchant?
Well for those who haven't traded with a pi merchant or who don't already have one. I will leave the telegram id of my personal pi merchant who i trade pi with.
Tele gram: @Pi_vendor_247
#pi #sell #nigeria #pinetwork #picoins #sellpi #Nigerian #tradepi #pinetworkcoins #sellmypi
Even tho Pi network is not listed on any exchange yet.
Buying/Selling or investing in pi network coins is highly possible through the help of vendors. You can buy from vendors[ buy directly from the pi network miners and resell it]. I will leave the telegram contact of my personal vendor.
@Pi_vendor_247
Introduction to Indian Financial System ()Avanish Goel
The financial system of a country is an important tool for economic development of the country, as it helps in creation of wealth by linking savings with investments.
It facilitates the flow of funds form the households (savers) to business firms (investors) to aid in wealth creation and development of both the parties
USDA Loans in California: A Comprehensive Overview.pptxmarketing367770
USDA Loans in California: A Comprehensive Overview
If you're dreaming of owning a home in California's rural or suburban areas, a USDA loan might be the perfect solution. The U.S. Department of Agriculture (USDA) offers these loans to help low-to-moderate-income individuals and families achieve homeownership.
Key Features of USDA Loans:
Zero Down Payment: USDA loans require no down payment, making homeownership more accessible.
Competitive Interest Rates: These loans often come with lower interest rates compared to conventional loans.
Flexible Credit Requirements: USDA loans have more lenient credit score requirements, helping those with less-than-perfect credit.
Guaranteed Loan Program: The USDA guarantees a portion of the loan, reducing risk for lenders and expanding borrowing options.
Eligibility Criteria:
Location: The property must be located in a USDA-designated rural or suburban area. Many areas in California qualify.
Income Limits: Applicants must meet income guidelines, which vary by region and household size.
Primary Residence: The home must be used as the borrower's primary residence.
Application Process:
Find a USDA-Approved Lender: Not all lenders offer USDA loans, so it's essential to choose one approved by the USDA.
Pre-Qualification: Determine your eligibility and the amount you can borrow.
Property Search: Look for properties in eligible rural or suburban areas.
Loan Application: Submit your application, including financial and personal information.
Processing and Approval: The lender and USDA will review your application. If approved, you can proceed to closing.
USDA loans are an excellent option for those looking to buy a home in California's rural and suburban areas. With no down payment and flexible requirements, these loans make homeownership more attainable for many families. Explore your eligibility today and take the first step toward owning your dream home.
3. What is international trade?
International trade refers to the trade between two or more countries.
International trade allows countries to exchange good and services with the
use of money as a medium of exchange.
Several benefit or advantages can be identified with reference to international
trade. However international trade does have its limitations as well.
While many nations are nominally committed to free trade, they tend to
intervene in international trade to protect the interests of politically important
groups
3
6. Benefit of international trade
1. Direct benefits of international trade
• Country specializes in the production of a few goods due to international trade and division of labor,
• it exports these commodities, which it produces cheaper in exchange for what others can produce at a lower cost.
• It gains increase in national income which, in turn, raises the level of output and the growth rate of economy.
• Thus the higher level of output through trade tends to break the vicious circle of poverty and promotes economic
development.
• International trade widens the market and increases the inducement to invest income and saving through more
efficient resource allocation. Moreover, when efforts are made to export products that LDCs are specialized, they tend
to widen the market.
• International trade provide employment opportunity.
• International trade also helps to transform the subsistence sector into the monetized sector by providing markets for
farm produce and raises the income and the standards of living of the peasantry.
6
7. Benefit of international trade
1. Indirect benefits of international trade
• First, international trade helps to exchange domestic goods having low growth potential for foreign
goods with high growth potential. The staple commodities of LDCs are exchanged for machinery, capital
goods, raw materials, and semi-finished products required for economic development.
• Second, international trade possesses an "educative effect". LDCs lack in critical skills, which are a
greater hindrances to development than is the scarcity of capital goods.
• Third, international trade provides the basis for the importation of foreign capital in LDCs. This
smoothens the balance of payments and inflationary pressures
• Lastly, international trade benefits LDCs indirectly by fostering healthy competition and checking
inefficient monopolies. Healthy competition is essential for the development of the export sector of
such economies and for checking inefficient exploitative monopolies that are usually established on the
grounds of infant industry protection.
7
8. What are the limitation of international trade?
8
9. Limitation of international trade
• Three arguments are usually advanced in support of the view that "international trade has impeded
the development LDCs".
1. International trade has strong backwash effects on the LDCs. Trade operates (as a rule) with a fundamental bias in
favor of the richer and progressive regions and in disfavor of the LDCs. This is because, the rich countries are having a
large base of manufacturing industries and by exporting their industrial products at cheap rates to LDCs, they have priced
out the small-scale industries of LDCs.
2. It has been argued that the operation of the international demonstration effect through international trade has adversely
affected capital formation in LDCs. This effect may made people of LDCs to buy unproductive and leisure products.
3. There has been a secular deterioration in the terms of trade of the LDCs. It implies that there has been an international
transfer of income from the poor to the rich countries and that the gains from international trade have gone more to
developed countries at the expense of LDCs.
9
12. Trade agreement and economic development
• Trade agreement refers to the trade agreement between two or more countries.
• There are a number of institution who work on promoting trade agreement between countries. One
of this institution is WTO.
“… In brief, the World Trade Organization (WTO) is the only international organization dealing with the
global rules of trade between nations. Its main function is to ensure that trade flows as smoothly,
predictably and freely as possible.
• It is the process of integrating economic decision-making such as consumption, investment and
saving all across the world
• The impact of trade agreement is to enhance trade liberalization and globalization.
– Liberalization: In general, liberalization refers to a relaxation of previous government restrictions, usually in
areas of social or economic policy.
– Globalization is the term used to describe the growing world wide integration of the people and countries.
12
13. What are the major features that characterize globalization?
13
14. Features that characterize globalization
• Among the features that characterize globalization include :
interconnection of sovereign countries through trade and capital flow;
harmonization of the economic rules that govern the interaction or
relationship between these sovereign nations;
creating structures to support and facilitate
dependence and inter connection; and
creation of a global market place
14
15. Positive and negative effects of globalization
• The process of globalization has both positive and negative effects to different category of
economies of the world.
• Competition among firms to get a good a share of the large world market leads to;
specialization and efficiency;
better quality products at reduced prices; economies of scale in production;
technological and managerial improvements.
World output of goods and services will increase both in quality and quantity which is expected
to translate into higher living standards of the world population.
15
17. Globalization debates
• Globalization debates include:
Is globalization a process or a project?
Is it a new era or nothing new?
Is it beneficial or dangerous
17
18. Difference between globalization and regionalization
• We should distinguish between globalization and regionalization.
– Globalization means the establishment of standards on a world-wide basis.
– Regionalization, on the other hand, means a situation in which various groupings of
states – more specifically, neighboring states – establish closer relations, when these states
employ policies of discrimination (or preferences) against all other states.
18
21. International trade policy plays
• International trade policy plays an important part in the economic development of an LDC. Trade
policy may be defined as one that helps in accelerating the rate of economic development:
by enabling the underdeveloped country to have a larger, share of the gains from trade,
by augmenting the rate of capital formation
by promoting industrialization; and
by maintaining equilibrium in the balance of payments.
21
23. Argument for trade policy
• The following are the major arguments for government intervention include
protecting jobs
protecting industries deemed important for national security
retaliating to unfair foreign competition
protecting consumers from “dangerous” products
furthering the goals of foreign policy
protecting the human rights of individuals in exporting countries
23
26. Instruments of international trade policy
• Note that trade barriers are usually intended to protect a domestic industry.
• The following are the common methods of trade protection
1. Tariffs: A tariff is a charge on imports. Specific tariffs are a fixed charge for each unit of good
imported
2. Quotas: A quota is a restriction on the quantity of imports.
3. Administrative Barriers:- Many countries use customs and inspection processes to interfere
with imports.
4. Subsidies: In order to assist exporting industries, some governments have adopted policies
of subsidizing exports.
26
28. What is Regional Economic Integration?
Or
What is its importance?
28
29. Regional Economic Integration
• Regional Economic integration an Agreements among countries in a geographic region to reduce,
and ultimately remove, tariff and nontariff barriers to the free flow of goods, services and factors
of production among each other.
• Three levels of economic integration
– Global: trade liberalization by GATT (General Agreement on Tariffs and Trades) or WTO
– Regional: preferential treatment of member countries in the group
– Bilateral: preferential treatment between two countries
29
31. Stages (types) of economic integration
There are four stages (types) of economic integration
1. FTA (free trade area):
– no internal tariffs among members, but each country imposes its own external tariffs to the third country.
– NAFTA (North America Free Trade Agreement
– AFTA (ASEAN Free Trade Area)
– EFTA (European Free Trade Area)
2. Customs union:
– no internal tariffs and common external tariffs
– Mercosur (Southern Common Market),
– CACM (Central American Common Market)
– CARICOM (Caribbean Community and Common Market)
3. Common market:
– free movement of products and factors (resources), which is customs union plus factor mobility
– EU (European Union – previously EEC)
4. Economic union:
– common market plus common currency
– coordination of fiscal and monetary policy
– EMU (Economic and Monetary Union)
31
32. Levels of Regional Integration
Levels of Regional Integration
Political Union Coordinate aspects of members’ economic and political systems
Economic Union
Remove barriers to trade, labor, and capital; set a common trade policy against
nonmembers; and coordinate members’ economic policies
Common Market Remove all barriers to trade, labor, and capital among members; and set a
common trade policy against nonmembers
Customs Union Remove all barriers to trade among members, and set a common trade policy
against nonmembers
Free-Trade Area Remove all barriers to trade among members, but each country has own
policies for nonmembers
32
33. Levels of Regional Integration
Free- trade area
Customs union
Common market
Economic Union
Political Union
33
Greater integration
36. Effects of integration
Effects of integration
Potential benefits Potential drawbacks
Trade creation
Greater consensus
Political cooperation
Creates jobs
Trade diversion
Shifts in employment
Loss of sovereignty
36
38. Structure of foreign trade in Ethiopia
• The structure of Ethiopian foreign trade or any other country’s foreign trade can be seen by
asking questions the following:
What goods and services have the country been selling to the rest of the world?
What goods and services have the country been purchasing from the rest of the world?
Who are the basic trading partners? The answer for this question will enable you to
understand the export and import structure and direction of Ethiopia foreign trade
• Answering the above question enable us to understand the structure of foreign trade in the
country.
38
40. The Export structure of Ethiopian foreign trade
• Export of Ethiopia foreign trade refers to the amount of goods and services that
the country sells to different countries.
• The export of the country can be seen usually based on two ways-by commodity
types and /or industrial origin.
• Ethiopia’s export sector is highly dominated by primary (agricultural) products
such as coffee, vegetables, fruits, pulses, chat, oilseeds, sugar and livestock
products such as live animals, hides and skins, honey and wax etc.
40
42. Import structure of Ethiopians foreign trade
• Import of foreign trade refers to the commodity that is imported from different
countries to home country.
• Like exports, import is also classified into two ways;
by broad commodity types and
by economic category.
• Like any other developing countries import structure for Ethiopia is dominated by
Consumer Goods.
• These Consumer goods are interchangeably followed by Semi- finished goods and
Fuel in similar fashion.
42
44. Direction of trade
• With whom has Ethiopia been trading? The answer to this question also provides the answer for
the question; what is the direction of external trade of Ethiopia.
• As far as Ethiopia's foreign trade is concerned, the destination of its exports and the origin of its
imports have almost remained the same over a long period. Why??????
• Europe has retained its predominance as the destination of our export and the origin of our
imports followed by Asia, America and Africa.
44
47. Foreign Trade Reform in Ethiopia
• In order to improve the foreign trade government undertaken liberalization and structural reform the country.
• The trade liberalization of the external sector so as to redress the prevailing huge external imbalances and thereby improve
the continually depleted foreign exchange reserve position of the county.
• Furthermore, within the framework of promoting exports, measures of reducing license fees for import and export and
simplifying the procedure of getting licenses were undertaken.
• In order to encourage to import trade liberalization the government reduced import tariff to the 35 percent.
• Further the country undertaken various efforts to join regional and multilateral trade agreement.
• As far as accessing other members’ market is concerned, Ethiopia has had preferential access to developed country markets
under such schemes as;
World Trade Organization accession
the Generalized System of Preferences (GSP),
EU’s Everything but Arms (EBA) Initiative,
Caribbean and Pacific (ACP) countries and
the African Growth and Opportunity ACT (AGOA).
47
49. Ethiopia WTO Accession
• Ethiopia has formally applied for membership of the WTO in 2003 and in 2007 has submitted its
Memorandum of Trade Regime, which is the initial requirement for accession.
• The following are the major objective of World Trade Organization (WTO):
– the increase of the standards of life,
– the attainment of full employment,
– the growth of real income and effective demand, and the expansion of trade in goods and services.
– The need for the preservation of the environment and integration of developing countries into the
world trading system
• The World Trade Organization operates three major sectoral agreements which are binding on all its
members:
1. the Multilateral Agreement on Trade in Goods
2. the General Agreement on Trade in Services, and
3. the Agreement on Trade-related Aspects of Intellectual Property Rights (TRIPs).
49
51. What are the major Benefits of WTO accession?
51
52. Benefits of WTO accession
• The following are usually considered as potential benefits of joining the WTO:
– Allow much greater access to foreign markets and larger export opportunities
– Encourage more flows of foreign direct investment
– Make local producers and manufacturers to be more competitive and international
market oriented
– Gives opportunity to get access to the effective dispute settlement mechanism of the
WTO
– Increases transparency and predictability
– For landlocked countries like Ethiopia, guarantees rights through maritime neighbor's swift
access to the most convenient international route.
52
55. Challenges of WTO accession
• The major challenge facing Ethiopia comes from within.
Its industrial and agricultural sectors lack competitive advantage, economies of scale, cutting
edge technology, marketing caliber and efficient production and distribution system.
The comparative advantage of abundant labor and land has not been fully utilized.
The land is largely degrades and fragmented.
The agricultural labor is unskilled.
Although there is an institution mandated to set standards and quality of products, the country
has not yet established or implemented a universally applicable standard and quality for
consumer products, except those imported.
55
57. Impacts of trade reform
• In order to see the impact of trade reform it is better to see the structure of foreign trade in
Ethiopia.
• The structure of Ethiopian foreign trade or any other country’s foreign trade can be seen by asking
questions like the following:
What goods and services have the country been selling to others and purchasing from the rest
of the world?
Who are the basic trading partners?
• Answering these question will enable to understand the export and import structure and direction
of Ethiopia foreign trade
57
59. What are the problems of Ethiopian’s foreign trade?
59
60. Problems of Ethiopian’s foreign trade
• The Ethiopia foreign trade is highly characterized by in exporting agricultural production which is even more
dominated by single commodity. On the other side, the country imports industrial a goods.
• In addition to this the country trade relation is established with those countries which are well developed as
compared to the level of our country development. These and other problems hampered the performance of
foreign trade in the country.
• Some of them are known as the Poor Performance of the real sectors of the economy specially agriculture, the
terms of trade, overvaluation of the currency, pricing and marketing policy of the government, smuggling of
exports
60
62. Pattern of international trade
Imports are the goods and services that country buy from people in other countries.
Exports are the goods and services we sell to people in other countries.
Pattern of international trade show us the change observed in the world due to the international
trade. It focus more on;
The amount and types of international trade and
The direction international trade.
The pattern of trade indicate the amount and magnitude of trading countries in the world. It
would answer what the amount of trade and who are more trade partner in the world during the
last few decades.
62
64. Trends of international trade
Trends of international trade indicate the change in the amount of export and import in the international trade.
The world export increased from around USD 2 trillion to around 23 trillion in 2013.
The World export show continuous growth during the last three decades.
The export show miner change around 2009 due to the world financial crisis and other factors.
In 2010 again the world export increased from the low growth.
In 2010 the world export again increased to 18 trillion from the lower 15 trillion in 2008.
The world export varies based on the level of economic development.
The world export dominated by western Europe and followed by Asia and North America.
In 2007, the West Europe took around 42 percent of the world export. The Asian took 27 percent and North
America took 13 of world export. Africa take only 3 percent of world export.
By 2010, China became the second largest trading partner after the United States, overtaking Germany and Japan.
China’s emergence reflects its rapid industrialization process and growing trade openness
64
66. Direction of trade
Direction of trade indicate the sources and destination of world trade.
Most of the time the trade conducted more between developed countries rather than developing
and developed countries.
The trade between north America is around USD 905 million which is he highest as compare to
North America with the rest of the world.
In the same way the trade between European countries is around USD 3 trillion a compared to the
rest of the world.
Africa showed different direction of trade. It trade more across the content rather than within the
content. Africa trade within was around USD 33 million as compared to USD 80 Million of North
America and USD 148 Million with Europe.
66
68. Who gains and who loses from globalization?
Many countries have gained from export led growth and more open markets,
particularly in the Asia-Pacific.
There have also been losers, for example in sub-Saharan Africa.
Careful assessment of the evidence on the effects of globalization both within and
between countries suggests that inequality has not increased between countries
and that inequality within countries is often wrongly attributed to globalization.
68
70. Economic globalization and developing countries
• In recent years, globalization has been regarded as the key challenge for nations and states all over the world.
• From a developing-country perspective, the discussion over the nature and dynamics of economic globalization displays some paradoxical
features.
• It is generally acknowledged that today economic globalization constitutes a main challenge for developing countries.
One obvious reason for this is that while deliberate policies by developed states have played an important role in promoting economic
globalization, the states of developing countries have not been among the globalization drivers.
States and companies based in developing countries have been globalization-takers’, not ‘globalization-makers’
• The general challenges of economic globalization for developing countries are the twin dangers of,
on the one hand, being economically marginalized – even excluded – from the world economy and,
On the other hand, having their national capacity for independent developmental activities severely eroded.
• Sub-Saharan Africa has over time experienced the strongest engagement with world markets; however, its export/GDP ratio has stagnated
while all other regions have experienced a steady increase in their ratios.
• East Asia marks itself as the region with the fastest growth and it has today the highest level of global trade integration.
70
71. 1. Does globalization lead to convergence or divergence?
2. Can globalization be reversed?
71