Presentation is loading. Please wait.

Presentation is loading. Please wait.

© The McGraw Hill Companies, Inc., 2000 Regional Economic Integration Chapter 8.

Similar presentations


Presentation on theme: "© The McGraw Hill Companies, Inc., 2000 Regional Economic Integration Chapter 8."— Presentation transcript:

1 © The McGraw Hill Companies, Inc., 2000 Regional Economic Integration Chapter 8

2 © The McGraw Hill Companies, Inc., 2000 Levels of Economic Integration Free Trade Area Customs Union Common Market Economic Union Political Union Level of Integration NAFTA EU Figure 8.1 in text

3 © The McGraw Hill Companies, Inc., 2000 Economic Case for Regional Integration Stimulates economic growth in countries Countries specialize in those goods and services efficiently produced. Additional gains from free trade beyond international agreements such as GATT and WTO. 8-2

4 © The McGraw Hill Companies, Inc., 2000 Political Case for Economic Integration Economic interdependence creates incentives for political cooperation and reduces potential for violent confrontation. Together, the countries have the economic clout to enhance trade with other countries or trading blocs. 8-3

5 © The McGraw Hill Companies, Inc., 2000 Impediments to Regional Integration Groups within countries may be hurt. Potential loss of sovereignty and control over domestic issues. Debate: Integration is trade creation? Integration is trade diversion? 8-4

6 © The McGraw Hill Companies, Inc., 2000 Political World Map 8-5

7 © The McGraw Hill Companies, Inc., 2000 Regional Economic Integration Agreements among countries in a geographic region to reduce, and ultimately remove, tariff and nontariff barriers to the free flow of goods, services and factors of production among each other. 8-6

8 © The McGraw Hill Companies, Inc., 2000 Growth of Regional Arrangements 8-7

9 © The McGraw Hill Companies, Inc.,

10 © The McGraw Hill Companies, Inc., 2000 Map

11 © The McGraw Hill Companies, Inc., 2000 European Union GDP 8-10

12 © The McGraw Hill Companies, Inc., 2000 European Union and the US (April, 1998) 8-11

13 © The McGraw Hill Companies, Inc., 2000 US Top European Trading Partners $ Billions 8-12

14 © The McGraw Hill Companies, Inc., 2000 Annual Real GDP Growth Rates EU and US % 8-13

15 © The McGraw Hill Companies, Inc., 2000 Unemployment EU and US % 8-14

16 © The McGraw Hill Companies, Inc., 2000 Inflation EU and US % 8-15

17 © The McGraw Hill Companies, Inc., 2000 EU Governance Heads of State and Commission President 1 representative from each member 20 Commissioners appointed by members for 4 year terms European Council Resolves policy issues Sets policy direction. European Commission Proposing, implementing, monitoring legislation. Council of Ministers Ultimate controlling authority. No EU laws w/o approval. European Parliament 630 directly elected members Propose amendments to legislation, veto power over budget and single- market legislation, appoint commissioners. 1 judge from each country Court of Justice Hears appeals of EU Laws. 8-16

18 © The McGraw Hill Companies, Inc., 2000 Map

19 © The McGraw Hill Companies, Inc., 2000 North American Free Trade Agreement Became law: January 1,1994 Over 15 year period: tariffs reduced (99% of goods traded) NTBs reduced investment opportunities increased Protects intellectual property Applies national environmental standards Special treatment for many industries 8-18

20 © The McGraw Hill Companies, Inc., 2000 Maquiladora NAFTA and Mexico Millions of Workers 8-19

21 © The McGraw Hill Companies, Inc., 2000 Employment in Foreign-Operated Factories in Mexico 8-20

22 © The McGraw Hill Companies, Inc., 2000 Canadian Workers Move South Thanks to NAFTA Thousands 8-21

23 © The McGraw Hill Companies, Inc., 2000 Andean PACT 8-22 Map 8.2

24 © The McGraw Hill Companies, Inc., 2000 ANCOM: Andean Pact Bolivia, Colombia, Ecuador, Peru, Venezuela Cartagana Agreement, One of oldest still in existence Population: 97 mm (14% of hemisphere) GNP: $122.6 billion Changed from FTA to customs union in

25 © The McGraw Hill Companies, Inc., 2000 $ Billions US Trade With The Andean Community 8-24

26 © The McGraw Hill Companies, Inc., 2000 Mercosur 8-25 Map 8.2

27 © The McGraw Hill Companies, Inc., 2000 The Mercosur Accord 1988: Argentina, Brazil. 1990: Paraguay, Uruguay 1995: Agreed to move toward a full customs union. Population: 209 mm (27% of hemisphere) GNP: $656.6 billion (8% of hemisphere) Trade doubled in first 3 years 8-26

28 © The McGraw Hill Companies, Inc., 2000 $ Billions US Trade With Mercosur 8-27

29 © The McGraw Hill Companies, Inc., 2000 Other Hemisphere Associations Central American Common Market CARICOM Free Trade Area of the Americas 8-28

30 © The McGraw Hill Companies, Inc., 2000 ASEAN 8-29

31 © The McGraw Hill Companies, Inc., 2000 Association of Southeast Asian Nations Created in million citizens Economic, political and social cooperation Brunei, Indonesia, Malaysia, the Philippines, Singapore, Thailand and Vietnam. 8-30

32 © The McGraw Hill Companies, Inc., 2000 Association of Southeast Asian Nations 8-31

33 © The McGraw Hill Companies, Inc., 2000 Net Flows of Private Capital to Indonesia, Malaysia, Philippines, South Korea and Thailand Thru April

34 © The McGraw Hill Companies, Inc., 2000 % Destination of Exports Source of Imports Asian Trade Flows 8-33

35 © The McGraw Hill Companies, Inc., 2000 Map

36 © The McGraw Hill Companies, Inc., 2000 Asia Pacific Economic Cooperation Founded in 1989 to promote open trade and practical economic cooperation. Promote a sense of community. 18 members GDP: $13 trillion (1995) 50% of total world income 40% of global trade 8-35


Download ppt "© The McGraw Hill Companies, Inc., 2000 Regional Economic Integration Chapter 8."

Similar presentations


Ads by Google