1. 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

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 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

4. 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

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 (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

9. 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)

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

11. 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

12. The European Union (EU)

13. 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

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 Africa
COMESA statistics

19. South American Agreements

20. 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