Chp 3- Global MKTG 445

Explain the trade relationship dynamics among signatories of NAFTA:

between CA,MX,USA they all promote ecopnmic growth thru tariff reductions and expanded trade and investment no common external tariffs restrictions on labor and other movement remain

Describe the various forms of economic integration in Europe

Objective is to harmonize national laws and regulations so that goods, services, people, and money could flow freely across national boundaries

Compare and contrast the four main categories of preferential trade agreements: Hierarchy of PFTs

@ bottom is free trade agreements: abolishes trading barriers, NAFTA (only between US, MX,CA) customs union: like if NAFTA added a tariff (that everyone agrees to) like 3% tariff on all imports from Italy common market: abolish tariffs, allow free flow of money, free flow of workers, service and products, opportunites for all economic union: economic and political (we will follow the same laws and customs like currencies, bank, parliament, legislation and economic rules like min wage and taxation) **CET: common external barriers

Common Market of the South (MERCOSUR)

Argentina, Brazil, Paraguay, Uruguay, Venezuela Customs union, seeks to become common market

Identify the main preferential trade agreements Asia-Pacific region: ASEAN (the Association of Southeast Asian Nations)

Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, Philippines, Singapore, Thailand, Vietnam removes 90% of tariffs on traded goods

SICA (Central American Integration System) countries? Moving towards a __ market Common external tariff of _% to _% Retains tariffs on goods also produced in __ country. Bc they are small countries, they want to unite and create a common market to become bigger and stronger instead of trying to grow individually.

El Salvador, Honduras, Guatemala, Nicaragua, Costa Rica, Panama common 0-15% importing

Identify the four main preferential trade agreements in Latin American and the key members of each: (what are they?)

SICA Andean Community Mercosur Caricom

Explain the role of the WTO in facilitating global trade relations among nations: What is the WTO and what does it do? Sometimes it is notified when a __ is going to be made between countries.

The WTO was based in Geneva, serves as dispute mediator, has enforcement power and can impose sanctions. PTA (preferential trade agreement)

Free Trade Area (FTA)?

a group of countries that remove trade barriers (like tariffs) among themselves

DR-CAFTA (Dominican Republic-Central America Free Trade Agreement)

all SICA members except Panama joined DR and US reduced risks to have more direct foreign investment

Andean Community (CAN)

includes Bolivia, Columbia, Ecuador, and Peru. It is an incomplete customs union

CARICOM (Caribbean Community and Common Market)

includes former English colonies in the Caribbean Basin as its members (Bahamas, Jamaica, Trinidad, etc) customs union with common external tariffs

Identify the issues for global marketers wishing to expand in Africa:

most have/ are experiencing politcal unrest all trying to move towards a customs union

Describe the activities of the regional organizations in the Middle East: what drives commerce? Gulf Cooperation Council?

oil prices drive commerce established by 6 countries with 45% of world's oil. These countries are trying to diversify bc the oil will run out, need to stay relevant.

GATT (General Agreement on Tariffs and Trade)

replaced WTO