Ppt

1. International
Business
Lecture No,38
By
Dr.Shahzad Ansar

2. Regional agreements
• From 1948 to 1994 108
regional trade cooperation
agreements were made,
Total agreements conveyed
to WTO were 175 among
these 107 were in force as of
mid 1999.

3. • GATT
• WTO
• EU
• NAFTA

4. Economic Integration
• Free Trade Area
–All barriers to trade among
members removed.
–Each country can determine own
trade policies toward nonmembers.
• Customs Union
–Eliminates barriers among
members and has a common
external trade policy.

5. Economic Union
No barriers among members,
common external policy,
common monetary and fiscal
policy, harmonized tax rates
and common currency.
Political Union
Has a coordinating bureaucracy
accountable to all citizens.

6. MERCOSUR
(Argentina,Brazil,Paraguay &
Uruguay)
SAFTA
South American Free Trade Area

7. FTAA
Free Trade Agreement of
Americas
APEC(Asia –Pacific
Economic Cooperation
Forum

8. Political Union
Economic Union
Common Market
Customs Union
Free
Trade
Area
NAFTA
EU
1992
Figure 8.2
Level of Economic Integration

9. Economic Integration
• Free Trade Area
–All barriers to trade among members
removed.
–Each country can determine own
trade policies toward nonmembers.
• Customs Union
–Eliminates barriers among members
and has a common external trade
policy.

10. Economic Integration
•Economic Union
–No barriers among members,
common external policy, common
monetary and fiscal policy,
harmonized tax rates and common
currency.
• Political Union
–Has a coordinating bureaucracy
accountable to all citizens.