6 types of regional integration

The pros of creating regional agreements include the following: The cons involved in creating regional agreements include the following: There are more than one hundred regional trade agreements in place, a number that is continuously evolving as countries reconfigure their economic and political interests and priorities. Today, they account for a considerable amount of world trade (Figure15-1, 15-2). Liz Alderman, “Contemplating the Future of the European Union,” New York Times, February 13, 2010, accessed April 30, 2011, http://www.nytimes.com/2010/02/14/weekinreview/14alderman.html. Free trade area. Types of Regional Trading Agreements. Mexico has always had a strong entrepreneurial business culture, but until NAFTA, it was protected from the pressures of international finance and the global marketplace. In the opening case study, you read about the pressures on the EU and the resistance by each of the governments in Europe to make policy adjustments to address the recession. Regional economic integration has enabled countries to focus on issues that are relevant to their stage of development as well as encourage trade between neighbors. 3. Furthermore, a primary goal for the development of the EU was that Europeans realized that they needed a larger trading platform to compete against the US and the emerging markets of China and India. There are four main types of regional economic integration. Today, the EU has twenty-seven member countries. Early efforts to study regional integration, as mentioned, mainly concentrated on the European Coal and Steel Community (ECSC) and the European Economic Community (EEC). Canada is currently negotiating a similar treaty called the Canada Central American Free Trade Agreement. Cooperation Council for the Arab States of the Gulf website, accessed April 30, 2011, http://www.gcc-sg.org/eng/index.html. All of the Visegrad Group have relatively developed free-market economies and have formal ties.20, Many of the Central European nations have left CEFTA to become members of the EU. Croatia and Macedonia are in the process of becoming EU members.“About CEFTA,” Central European Free Trade Agreement, accessed April 30, 2011, http://cefta.net; Andzej Arendarski, Ludovit Cernak, Vladimir Dlouhy, and Bela Kadar, “Central European Free Trade Agreement,” December 21, 1992, accessed April 30, 2011, http://www.worldtradelaw.net/fta/agreements/cefta.pdf; Wikipedia, s.v. If you are curious about a business career in trade, then you may want to consider combining a business degree with a legal degree for the most impact. Regional integration’s impact on trade and investment flows, allocation of economic activity, growth, income distribution are often difficult to assess. A trade bloc is basically a free-trade zone, or near-free-trade zone, formed by one or more tax, tariff, and trade agreements between two or more countries. 30. Identify the major regional economic areas of cooperation. In particular, competitiveness and efficiency have become higher priorities, although company owners and managers still like to surround themselves with people they know and to groom their sons and sometimes their daughters to be their successors. The six member states are Bahrain, Kuwait, Saudi Arabia, Oman, Qatar, and the United Arab Emirates (UAE). 17. 31. “About CEFTA,” Central European Free Trade Agreement, accessed April 30, 2011. Second, there are more EU member countries than there are countries using the euro. 41. Now the world’s fourth-largest trading bloc after the EU, NAFTA, and the Association of South East Asian Nations (ASEAN),9 the group has been strategically oriented to develop the economies of its constituents, helping them become more internationally competitive so that they would not have to rely on the closed market arena. Individually, the European countries would never have the economic power they now have collectively as the EU. Joanna Klonsky and Stephanie Hanson, “Mercosur: South America’s Fractious Trade Bloc,” Council on Foreign Relations, August 20, 2009, accessed April 30, 2011. Companies that choose to manufacture in one country find it easier and cheaper to move goods between member countries in that trading bloc without incurring tariffs or additional regulations. For free trade advocates, the CAFTA-DR is also seen as a stepping stone toward the eventual establishment of the Free Trade Area of the Americas (FTAA)—the more ambitious grouping for a free trade agreement that would encompass all the South American and Caribbean nations as well as those of North and Central America (except Cuba). The European Union (EU) is the most integrated form of economic cooperation. MERCOSUR constituents compose nearly half of the wealth created in all of Latin America as well as 40 percent of the population. With the removal of virtually all tariffs and other barriers to trade, the CAFTA-DR agreement is making commerce with these countries even easier, opening opportunities to a range of industries. The huge growth in trade between the United States and Mexico has greatly expanded the role—and scale—of these assembly operations. ASEAN represents nearly 600 million people and a combined GDP of USD $1.5 trillion across Brunei Darussalam, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand and Vietnam. As a political and economic organization, the group focuses on trade, economic, and social issues.37 The GCC has become as much a political organization as an economic one. 7. “African Economic Community,” accessed April 30, 2011. Lucy Hornby, “Taiwan and China Sign Trade Pact,” Reuters, June 29, 2010, accessed April 30, 2011. Mexico has always had a strong entrepreneurial business culture, but until NAFTA, it was protected from the pressures of international finance and the global marketplace. 34. A global firm with operations in North America, the EU, and Asia could easily find itself at the crosshairs of competing trade interests. Tariffs and restrictions on trade with nations outside the agreement are retained. 42. Accordingly, the organization has its own governing and decision-making institutions. Wages and benefits are generally poor but much better than in the rest of Mexico. As you learned in the opening case study, the EU originally began in 1950 to end the frequent wars between neighboring countries in the Europe. Surging trade, rising investment, and expanding output are the economic indicators that point to the group’s remarkable achievement. The African Economic Community (AEC) is an organization of the African Union states. In 2002, ASEAN and China signed a free trade agreement that went into effect in 2010 as the ASEAN–China Free Trade Area (ACFTA). As part of NAFTA, two side agreements addressing labor and environmental standards were put into place. The GDP of this group of nations is put at $624bn (£382.9bn).Louise Greenwood, “Q&A: Free Trade Zones in Africa,” BBC Africa Business Report, BBC News, August 21, 2009, accessed December 31, 2010, http://news.bbc.co.uk/2/hi/business/8208254.stm. It’s likely that any resulting agreements will have to reconcile differences in rules and regulations with NAFTA as well as any other existing agreements.“What Is CAFTA?,” CAFTA Intelligence Center, accessed April 30, 2011, http://www.caftaintelligencecenter.com/subpages/What_is_CAFTA.asp. Wages and benefits are generally poor but much better than in the rest of Mexico. Preferential Trade Agreement. Some trading blocs have resulted in agreements that have been more substantive than others in creating economic cooperation. European Commission, “Andean Community Regional Strategy Paper 2007–2013,” December 4, 2007, accessed April 30, 2011. The GDP of this group of nations is put at $624bn (£382.9bn).44. For a variety of reasons—from geography and language to well-developed business and family connections—this is a role that Florida has been playing very successfully for a number of years and which, with the implementation of CAFTA-DR, is only gaining in importance.Enterprise Florida, “Your Business: International,” The CAFTA Intelligence Center, accessed December 30, 2010, http://www.caftaintelligencecenter.com/subpages/location-International.asp. With this in mind, it’s easy to see why so many Europeans see the need to speak more than one language fluently! Similarly, Canadian and US companies have sought to enter the expanding Mexican domestic market. In the long run, NAFTA hasn’t been as impactful as its supporters had hoped nor as detrimental to workers and companies as its critics had feared. 1. “Dominican Republic–Central America–United States Free Trade Agreement (CAFTA-DR),” Export.gov, accessed April 30, 2011, http://www.export.gov/FTA/cafta-dr/index.asp. is an example. Today, sixteen member countries use the the euro. (San Francisco: Jossey-Bass, 1998). Specifically, it has allowed Iceland (now an EU candidate), Liechtenstein, and Norway to participate in the EU’s single market without a conventional EU membership. 10. US influence is also pervasive in the products and services offered throughout Mexico. However, only partial accords have been reached between the government and the peasants. For this reason, each subsequent type of the RIA covers the content of the previous type in addition to its own requirements. Mohsin Khan, “The GCC Monetary Union: Choice of Exchange Rate Regime,” Peterson Institute for International Economics, April 2009, accessed April 30, 2011, http://www.iie.com/publications/wp/wp09-1.pdf. In 2008, the GCC formed a common market, enabling free flow of trade, investment, and workers.P. 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