John Wiley & Sons, Inc c GLOBAL ECONOMIC ENVIRONMENT Chapter Two
John Wiley & Sons, Inc c Global Economic Environment w Overview w 1. Intertwined World Economy w 2. Economic Environment Within a Nation w 3. Role of the General Agreement on Tariffs and Trade (GATT) and The World Trade Organization (WTO) w 4. US Position on Foreign Direct Investment and Trade
John Wiley & Sons, Inc c Global Economic Environment (cont) w 5. Information Technology and The Changing Nature of Competition w 6. Regional Economic Arrangements w 7. Multinational Corporation
John Wiley & Sons, Inc c Intertwined World Economy Ten Big Emerging Markets (BEM’s) w Chinese Economic Area CEA (China, HongKong, Taiwan) w India w South Korea w Mexico w Brazil w Argentina w South Africa w Poland w Turkey w Assn of Southeast Asian Nations - ASEAN (Indonesia,Brunei,Mal aysia,Singapore, Thailand, Philippines, Vietnam)
John Wiley & Sons, Inc c Intertwined World Economy (cont) w Exhibit 2-1 “Top Ten Countries with which US Traded Merchandise in 1995” w Foreign Direct Investment w Portfolio Investment (indirect investment)
John Wiley & Sons, Inc c Economic Environment Within a Country w market economy vs command economy w Exhibit 2-2 “ Interrelationships Between Control of Economic Activity and Ownership of Productive Resources” Robinson Patman and Sherman Act Keiretsus w Exhibit 2-3 “Telecommunications Hotspots”
John Wiley & Sons, Inc c Role of GATT and WTO w GATT Most favored nation concept (MFN) Uruguay round w WTO Exhibit 2-4 “Summary of the Final Act of the Uruguay Round of GATT” w Financial Services in the WTO/GATT
John Wiley & Sons, Inc c US Position in Foreign Direct Investment and Trade w US Direct Investment Overseas Exhibit 2-5 “US Direct Investment Abroad” w Foreign Direct Investment (FDI) in The United States Exhibit 2-6 “FDI Outlays in the US” Exhibit 2-7 FDI Stock in the US ”
John Wiley & Sons, Inc c US Position in FDI and Trade (cont) w Balance of Payments Position Exhibit 2-8 “US International Trade in Goods and Services, Balance of Payments Basis ” Exhibit 2-9 “US International Trade in Goods, Balance of Payments Basis, ” Exhibit 2-10 “US International Trade in Services, Balance of Payments Basis
John Wiley & Sons, Inc c Information Technology and The Changing Nature of Competition w Trade Related Intellectual Property (TRIP’s) w Information related products
John Wiley & Sons, Inc c Regional Economic Arrangements Multination Trading Blocs w European Union (EU) w North American Free Trade Agreement (NAFTA) w European Free Trade Area (EFTA) EU plus Finland, Sweden, Norway, Iceland, Austria, Liechtenstein, Switzerland. w MERCOSUR Southern Cone Free Trade Area (Brazil, Argentina, Uruguay, Paraquay plus Chile) w Andean Group in South America
John Wiley & Sons, Inc c Regional Economic Arrangements (cont) w Gulf Cooperation Council (GCC) in West Africa w South Asian Agreement for Regional Cooperation (SAARC) India, Pakistan, Sri Lanka, Bangladesh, Nepal, Maldives, Bhutan w ASEAN
John Wiley & Sons, Inc c Regional Economic Arrangements (cont) w Free trade areas w Customs Unions free trade areas plus common external tariffs = a customs union w Common Markets w Monetary Union w Political Union
John Wiley & Sons, Inc c Multinational Corporations w “ in 1985, 80% of the non-communist world’s productive assets would be controlled by just companies ” Howard Perlmutter, Professor,Wharton School