Cross-National Cooperation and Agreements
Week 14
International Business
Cross-National Cooperation and Agreements
*1 Economic Integration
-Approaches to economic integration may be: -Bilateral integration – two countries cooperate closely, usually in the form of tariff reductions -Regional integration – a group of countries located in the same geographic proximity decide to cooperate, i.e. the European Union -Global integration – countries worldwide cooperate through the WTO
*2 The World Trade Organisation
-GATT: Predecessor to the WTO
-Most Favoured Nation
-Dispute Settlement
-The Rise of Bilateral Agreements
Regional Economic Integration
-Regional trade agreements – integration confined to a region and involving more than two countries
-Geographic proximity is an important reason for 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
*3 Effects of Integration
-Static Effects
-Dynamic Effects
-Trade Creation
-Trade Diversion
-Economies of Scale
-Increased Competition
Major Regional Trading Groups
-European Union
-North American Free Trade Agreement
-The Americas: CARICOM, MERCOSUR, CAN, LAIA
-ASEAN
-APEC
-The African Union
*4 European Union
-Predecessors
-Organisational Structure
-The Single European Act
-Monetary Union
-Expansion
-Bilateral Agreements
*5 How to Do Business with the EU: Implications for Corporate Strategy
-Companies need to determine where to produce products
-Companies need to determine that their entry strategy will be
-Companies need to balance the commonness of the EU with national differences
*6 NAFTA Rational
-US – Canadian trade is the largest bilateral trade in the world
-The US is Mexico’ and Canada’s largest trading partner
Rules of Origin and Regional Content
-Rules of origin-goods and services must originate in
International Business
Cross-National Cooperation and Agreements
*1 Economic Integration
-Approaches to economic integration may be: -Bilateral integration – two countries cooperate closely, usually in the form of tariff reductions -Regional integration – a group of countries located in the same geographic proximity decide to cooperate, i.e. the European Union -Global integration – countries worldwide cooperate through the WTO
*2 The World Trade Organisation
-GATT: Predecessor to the WTO
-Most Favoured Nation
-Dispute Settlement
-The Rise of Bilateral Agreements
Regional Economic Integration
-Regional trade agreements – integration confined to a region and involving more than two countries
-Geographic proximity is an important reason for 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
*3 Effects of Integration
-Static Effects
-Dynamic Effects
-Trade Creation
-Trade Diversion
-Economies of Scale
-Increased Competition
Major Regional Trading Groups
-European Union
-North American Free Trade Agreement
-The Americas: CARICOM, MERCOSUR, CAN, LAIA
-ASEAN
-APEC
-The African Union
*4 European Union
-Predecessors
-Organisational Structure
-The Single European Act
-Monetary Union
-Expansion
-Bilateral Agreements
*5 How to Do Business with the EU: Implications for Corporate Strategy
-Companies need to determine where to produce products
-Companies need to determine that their entry strategy will be
-Companies need to balance the commonness of the EU with national differences
*6 NAFTA Rational
-US – Canadian trade is the largest bilateral trade in the world
-The US is Mexico’ and Canada’s largest trading partner
Rules of Origin and Regional Content
-Rules of origin-goods and services must originate in