global marketing chapter 3

GATT
-general agreement on tarrifs and trades
-treaty among nations to promote trade among members established in 1947
-handled trade disputes
-lacked enforcement power
-replaced by WTO in 1995
the world trade organization (WTO)
-forum for trade-related negotiations among 153 members
-based in Geneva
-serves as dispute mediator through DSB
– has enforcement power and can impose sanctions
preferential trade agreements
-many countries seek to lower barriers to trade within their regions
-PTAs give partners special treatments and may discriminate against others
– over 300 PTAs have been notified to the WTO
free trade area
– two or more countries agree to abolish tariffs and other barriers to trade amongst themselves
-countries continue independent trade policies with countries outside agreement
-rules of origin requires restricat transshipment of goods from the country with the lowest tariff to another
North America–NAFTA
-canada united states mexico
-established free trade area 1994
-all 3 nations pledge to promote economic growth through tariff reductions and expanded trade and investment
-no common external tarrifs
-restrictions on labor and other movements remain`
customs union
-evolution of Free Trade Area
– includes the elimination of internal barriers to trade
-and establishes common external barriers to trade
common market
– includes the elimination of internal barriers to trade (as in free trade area)
-and establishes common external barriers to trade (as in customs union)
-and allows for the free movement of factors of production, such as labor, capital, and information (as in common market)
economic union
– includes the elimination of internal barriers to trade (as in free trade area)
-and establishes common external barriers to trade (as in customs union)
-and allows for the free movement of factors of production, such as labor, capital, and information (as in common market)
-and coordiantes and harmonizes economic and social policy within the union
full evolution of economic union
-creation of unified central bank
-use of single currency
-common policies on issues such as agriculture, social policy, transport, competition, mergers, taxation
-requires extensive political unity
-would lead to a central government in time
the eroupean union (EU)
-initially began with the 1958 treaty of rome
– objective is to harmonize national laws and regulations so that goods, services, people, and money could flow freely across national boundaries
africa
-54 nations over 3 distinct areas (republic of south africa, north africa, black/sub-saharan africa)
-Mena: middle east and north africa (viewed as regional entity)