1. Welcome to class of World Marketplace by Dr. Satyendra Singh University of Winnipeg Canada www.uwinnipeg.ca/~ssingh5

2. United Nations –191 nations  peace and global stability –Has functions related to business –General Assembly each member country has one vote regardless of size, wealth or power

3. United Nations –Security Council Main policy-setting body of the UN, composed of 15 members including 5 permanent members –Permanent: UK, USA, Russia, France and China –Nonpermanent: Africa/Asia (5), Latin America (2), Western Europe (2), Eastern Europe (1) – to be selected by the general assembly for a 2-yr term. –Economic and Social Council (ECOSOC) UN body concerned with economic and social issues such as trade, development, education, and human rights

4. Economic Integration Free trade area (FTA) –Area in which tariffs among members have been eliminated, but members keep their external tariffs No movement of people and services Customs Union –Collaboration that adds common external tariffs to an FTA Common Market –Customs union that includes mobility of services, people, and capital within the union Complete Economic Integration –Integration on both economic and political levels

5. World Trade Organization –A multinational body of 149 members that deals with rules of trade between nations –Outgrowth of General Agreement on Tariffs and Trade (GATT), that functioned to encourage trade liberalization from 1947 to 1995

6. WTO Principles –Trade  without discrimination –Trade  freer, with trade barriers negotiated downward –Trade  predictable –Trade  more competitive –Trade  more beneficial for less developed countries, encouraging development and economic reform –Trade  protects copyrights, trademarks, trade secrets, and other intellectual property matters –Disagreement on agricultural policies India, Brazil…

7. Decision-Making Process WTO – decision process a bit subtle –Each country has a vote and decision is by consensus –In reality -- US, EU, Canada and Japan –Some countries are in a better position to impose sanctions in case of trade dispute –Primary aim of WTO is to liberalize world trade! –Protest against globalization continues World Bank and IMF – decision process undemocratic! –Votes are based on shares  depends on income  so rich nations have more votes –It is reflected on the board of both institutions –US and UK have their own Executive Director (ED) – 2 –Whereas African nations have to share their 2 EDs –Some countries are borrowers and some lenders

8. Global Agencies Organization For Economic Cooperation and Development (OECD) –Group of developed countries dedicated to promoting economic expansion in its member- nations Organization of Petroleum Exporting Countries (OPEC) –Cartel of 12 petroleum exporting countries Middle East (6): Iran, Iraq, Kuwait, Qatar, Saudi Arabia and UAE Africa(4):Algeria, Angola, Nigeria, Libya South America (2): Equator and Venezuela Other non OPEC oil exporting countries: UK, Russia, Mexico, Norway

9. Trading Blocks North America –North America Free Trade Agreement (NAFTA) –European Free Trade Agreement (EFTA) European Union Asia –Association of SouthEast Asian Nations (ASEAN) –Asia Pacific Economic Cooperation (APEC) Africa –Economic Council of West African States (ECOWAS) –Common Market for Eastern and Southern Africa (COMESA) South America –Mercosur (Mercosul)

10. North American Free Trade Agreement (NAFTA) NAFTA –Established January 1, 1994 – Agreement creating a free trade area among Canada, Mexico, and the United States

11. European Free Trade Agreement (EFTA) EFTA –Founded in 1960 by seven European countries: Austria, Denmark, Norway, Portugal, Sweden, Switzerland, Finland, Iceland, Liechtenstein, and the United Kingdom –Today, a 4-nation non-EU FTA in Europe: Norway, Iceland, Liechtenstein, Switzerland

12. The European Union (EU)

13. The European Union (EU)… European Union –A body of 28 European countries dedicated to economic and political integration –Romania and Bulgaria joined in 2007, to move membership to 27 –Croatia joined in 2013  28th country

14. ASEAN: Asso. Southeast Asian Nations Free Trade 10 countries –Brunei, Cambodia, Indonesia, Lao, Malaysia, Mayamar, Philippines, Singapore, Thailand, and Vietnam HO: Jakarta ASEAN scholarship ASEAN Univ.Network

15. APEC: Asia Pacific Economic Cooperation Eco. Growth & prosperity –Trade/invst Liberalization –Business Facilitation –Economic/tech cooperation Important –40% of world’s pop –50% of world’s GDP –40% of world’s trade 21 countries –Australia, Brunei, Canada, Indonesia, Japan, Korea, Malaysia, NZ, Phil, Singapore, Thai, US, Taipei, HK, china, Mexico, PNG, Chile, Peru, USSR, Vietnam HO: Singapore

16. African Trade Agreements

17. ECOWAS: Economic Council West African States Economic integration –Mutual defense, court of justice –Ecowas rail, common currency 2015 –Gambia, Ghana, Guinea, Nigeria, Sierra L 15 countries –Benin, Burkina Faso, Cape Verde Cote d’lvoire, Gambia, Ghana, Guinea- Bissau, Liberia, Mali, Nigeria, Senegal, Sierra Leone, Togo –Niger – suspended 2009– election problem –Guinea – suspended 2008 – coup attempt –Liberia wants to join Ecowas HO: Abuja, Nigeria

18. COMESA: Common Mkt for Eastern Southern Africa Regional economic integration –Trade and investment 19 countries –Burundi, Comoros, Congo, Djibouti, Egypt, Eretria, Ethiopia, Kenya, Libya, Madagascar, Malawi, Mauritius Rwanda, Seychelles, Sudan, Swaziland Uganda, Zambia, Zimbabwe HO: Lusaka, Zambia Branding: Buy African, Build AfricaBuy African, Build Africa COMESA statistics

19. South American Agreements

20. MERCOSUR Free trade and people movement Full member –Argentina, Brazil, Paraguay, Urguay Venezuela (Paraguay to ratify) Associate member –Bolivia, Chile, Columbia, Ecuador Peru Observer –Mexico HO: Sao Paula, Brazil