Welcome to class of World Marketplace Dr Welcome to class of World Marketplace Dr. Satyendra Singh Professor, Marketing and International Business University of Winnipeg Canada s.singh@uwinnipeg.ca http://abem.uwinnipeg.ca www.abem.ca/conference

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

United Nations Security Council Economic and Social Council (ECOSOC) 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

Economic Integration Free trade area (FTA) Customs Union Common Market 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

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

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…

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

Global Agencies Organization For Economic Cooperation and Development (OECD) Group of (mostly) developed countries (35) 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

Trading Blocks North America European Union Asia Africa South 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)

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

European Free Trade Agreement (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

The European Union (EU)

The European Union (EU)… 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

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

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

African Trade Agreements

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

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 Africa COMESA statistics

South American Agreements

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