9–2 Managing in a Global Environment Understanding The Global Environment And WTO The World Trade Organization
9–3 Managing in a Global Environment The World Trade Organization (WTO) Evolved from the General Agreement on Tariffs and Trade (GATT) in 1995. Functions as the only global organization dealing with the rules of trade among nations. Has 145 member nations. Monitors and promotes world trade through: Administering trade agreements Acting as a forum for trade negotiations Settling trade disputes Reviewing national trade policies Assisting developing countries in trade policy issues, through technical assistance and training programs Cooperating with other international organizations
9–4 Regional Trading Alliances Global competition is influenced by regional trading and cooperation agreements. EUSARC NAFTAASEAN Managing in a Global Environment
9–6 Managing in a Global Environment Regional Trading Alliances EUEuropean Union (Created in 1992) Create a single market among the 27 members countries Belgium, Denmark, France, Greece, Ireland, Italy, Luxembourg, Netherlands, Portugal, Spain, the United Kingdom, Germany, Austria, Finland, Sweden, Bulgaria, Cyprus, Czech Republic, Estonia, Hungry, Latvia, Lithuania, Malta, Poland, Romania, Slovakia, Slovenia Purposes: A unified economic and trade entity A single market without barriers to travel, employment, investment and trade Economic and Monetary Union (EMU). Euro common currency Asertion of economic power Created one of the world’s richest market
9–7 Managing in a Global Environment Regional Trading Alliances NAFTANorth American Free Trade Agreement United States, Canada, and Mexican trade zone Purposes: Promote liberalized trade, not free trade Increase efficiency and customer satisfaction
9–9 Managing in a Global Environment Regional Trading Alliances ASEANAssociation of Southeast Asian Nations Trading alliance of 10 Southeast Asian nations Myanmar, Laos, Thailand, Vietnam, Philippines, Cambodia, Brunei, Malaysia, Singapore, Indonesia Purposes : Created in one of the fastest growing economic region in the world Could compete NAFTA and EU
9–11 Managing in a Global Environment Regional Trading Alliances SARCSouth Asia Regional Cooperation Pakistan, India, Bangladesh, Srilanka, Nepal, Bhutan, Maldives SAARC provides a platform for the peoples of South Asia to work together in a spirit of friendship, trust and understanding. It aims to accelerate the process of economic and social development in Member States. –Agriculture and Rural Development; –Health and Population Activities; –Women, Youth and Children; –Environment and Forestry; –Science and Technology and Meteorology; –Human Resources Development; and –Transport.
9–12 Managing in a Global Environment The “Greening” of the Management Definition Recognition of the close link between an organization’s decisions and activities and its impact on the natural environment