1. REGIONAL ECONOMIC BLOCS
The emergence of regional economic blocs in the last few decades has significantly changed the international business environment. The most well known and comprehensive economic bloc is the European Union. In Table 1 are presented the most significant regional economic blocs. There are four main types of regional economic blocs (Carpenter & Dunung 2011):
- The free trade area is the simplest form of regional economic integration. Member countries of this type of regional integration abolish restrictions on all type of trade among themselves and reserve the right to independently determine the trade policies for non-member states;
- The customs union is type of regional integration when member countries abolish tariff
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In order to benefit from the regional integration of a group of countries, such as smaller trade restrictions, many companies invest in a certain country to be able to sell their products and services in other member countries of the same regional economic bloc. For instance, many multinational companies have invested in certain EU member countries, such as the Czech Republic and Poland, with a sole purpose to benefit from their membership of the European Union (Frynas & Mellahi, 2015).
Table 1 Regional economic blocs
AFTA (ASEAN Free Trade Area)
Type of regional bloc: Free trade area
Member countries: Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, Philippines, Singapore, Thailand, and Vietnam.
NAFTA (North American Free Trade Agreement)
Type of regional bloc: Free trade area
Member countries: Canada, Mexico and United States.
SADC (Southern African Development Community)
Type of regional bloc: Free trade
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Host governments have the power to support, but also to limit the activities of multinational companies. If local authorities believe that the activities of multinational companies are compatible with their national interests, they may assist their operation by placing various stimulating regulations. If, however, the activities of multinational companies do not meet their expectations, then local governments may impose various restrictive regulations that limit the operation of foreign companies (Fatehi, 2008). The reason of the difficulty between the multinational companies and host governments lies in the difference of their strategic goals. In Tabela 2 are presented the strategic goals of the multinational companies and local
Ever since the NAFTA trade agreement was signed in 1994, it has created huge economic growth between all three countries. Among the three countries, an increase in trade has boosted the Canadian
The authors continue in contradicting this idea of a three-way, triangular trade system by calling it “misleading”. They explain how the trading system has many more factors and is much more than just a “triangle”. “What we call a triangle was really as round as the globe. (37)” The authors give direct evidence of a much more complicated trading system involving many countries.
Argument states that re-electing Adam’s would lead to improved state’s economy and as per a recent poll the author believes that the economy is likely to improve if Adam’s is elected. The author also says that if Zebulon, who is Adams opponent, is elected then it will be a wrong decision as he disagrees with many of Adam’s economic policies. But the argument has certain flaws without which it cannot be evaluated. The argument makes unsubstantiated assumptions without any clear evidences. It also omits important considerations which are necessary to get a 360-degree view of the described scenario.
AP summer assignment Trading has always been an integral way in which people spread technological ideas, religion, culture, etc. Some religions such as Islam have put the importance of merchantry in their holy book the Quran. Some people like the chinese wanted to impress people with their treasure fleets. However, in order for most people to trade there has to be a routes people they will take to reach their destination. This brings me to the following reason why interregional trading increased.
From 300 to 1450, the trade networks between Africa and Eurasia showed consistency in the use of the same trade routes, but showed change in the amount of ideas spread throughout the trade networks. Throughout the trade networks between Africa and Eurasia, the continuities of the trade networks and the trade cities stayed the same. The use of the Mediterranean Sea trade, the Silk Road trade, and the Indian Ocean trade were continually used during the time period 300 to 1450. The trade routes were able to continue because of the consistent demand for goods such as spices and luxuries along the Silk Road, jewelry and gold in the Mediterranean Sea, and cotton and porcelain in the Indian Ocean between Africa and Eurasia.
This era includes only 300 years, but some profound and long-lasting changes occurred. The western hemisphere came into continued contact with the eastern hemisphere. Technological innovations, strengthened political organization, and economic prosperity all contributed to this change that completely altered world trade patterns. Technological advancements and willingness of political leaders to invest in it meant that sea-based trade became much more important. Relative power and prosperity of Europe increased dramatically during this time in comparison to empires in the longer-established civilization areas but, Europe did not entirely eclipse powerful empires in Southwest Asia, Africa, and East Asia.
Question 4.2 Advantage of bilateral and regional trade agreement 1. Bilateral and regional trade agreements increase trade between the two countries. They open markets to successful industries. As companies benefit, they add jobs 2. They are easier to negotiate than multilateral trade agreements since they only involve two
Published in “The Canadian Journal of Political science”, Christopher Cochrane and Andrea Perrella examine the concept of regionalism in Canadian politics, in their article titled “Regions, Regionalism and Regional Differences in Canada”. As a thesis, the article aims to analyze the origin and cause of regionalism in Canada, addressing the issue of government intervention in the economy and the different opinions towards it as the primary focus of their arguments. It is evident that regional differences exist aspects of politics such as voting behaviour, political culture, ideology, attitudes and public opinion. There is however little agreement on the cause of these regional divisions or, indeed, about what constitutes as a region. In general
Chile’s government is a democratic republic, meaning the head of state (in this case the president) is elected through a democratic multi party system. The Chilean president is not only the head of state but head of government as well. Prominent political parties are grouped into two major coalitions, first the center-left coalition “New Majority” and second the center-right coalition “Alliance”. The Chilean president is elected for a four year term and cannot be elected for consecutive terms.
Throughout the twentieth century, countries were creating treaties, trade blocs and global governance institutes to promote open market and free trade. Europe’s golden age of trade with very low tariff and high economic development began mid-19th century and collapsed
However, although this resulted on countries being more diplomatic and did allow an increase in trade, warfare did not end here. It was only after World War II in 1944 that the western economies gathered at the Bretton Woods Conference, to create a new international monetary and financial order, with the IMF and World Bank acting as political drivers to promote macro-economic integration. The two international institutions aided in the acceleration of regional integration and a global market place. It was the continuous development and success of reducing barriers internationally and promoting trade by both the Kennedy round, 1963, and the Tokyo round, 1975, that the Uruguay round in 1993, was developed, creating the GATT (presently known as WTO); established to liberalize international trade on the principle of non-discrimination and elimination of trade barriers by multilateral negotiations (Neaumann, 2009).
China and South Africa), or one country and a trading bloc (e.g. the European Union and Morocco) or 2 trading blocs (e.g. EFTA and SCU). ADVANTAGES OF REGIONAL AND BILATERAL APPROACH FOR BOTH POOR AND RICH COUNTRIES Most of developing countries are enjoying some sort of trade preferences in the form of very low or up to zero tariffs on their exports to developed countries.
Comparing Economic Systems There are three different economic systems Traditional, Market and Command. The survival of any society depends on its ability to provide food, clothing and shelter for its people. Due to the fact that these three societies face scarcity, which means “The state of being scarce or in short supply”, decisions concerning WHAT, HOW and FOR WHOM to produce must be made. However, another similarity is that all societies have an economy or an economy system which is an organized way of providing for the wants and needs of their people. This determines on the type of economy system they have.
Multinational corporations see these countries as more attractive locations to establish branches of their business and so the cycle of more money going into the economy
I EMERGENCE OF REGIONALISM Global economic integration is a phenomenon that can be traced back to seven centuries ago since the travels of Marco Polo. Since his travel, integration has taken place through trade, factor movements and communication of economically useful knowledge and technology and is on the rise ever since. Regionalism is considered to be far from being uniform process; it has however emerged in various stages which are shaped by both external and internal factors. The starting point for regionalism is roughly estimated to be post the Second World War.