trade blocks & business centres
DESCRIPTION
TRANSCRIPT
![Page 1: Trade blocks & business centres](https://reader033.vdocument.in/reader033/viewer/2022061220/54bc97bc4a7959163e8b4959/html5/thumbnails/1.jpg)
Trade Blocks 1
TRADE BLOCKS & BUSINESS CENTRES
![Page 2: Trade blocks & business centres](https://reader033.vdocument.in/reader033/viewer/2022061220/54bc97bc4a7959163e8b4959/html5/thumbnails/2.jpg)
Trade Blocks
2
Economic Integration
Countries create business opportunities for themselves by integrating their economies
To avoid unnecessary competition among themselves & also from other countries
Covers different kinds of arrangements between or among countries
![Page 3: Trade blocks & business centres](https://reader033.vdocument.in/reader033/viewer/2022061220/54bc97bc4a7959163e8b4959/html5/thumbnails/3.jpg)
Trade Blocks
3
Different kinds of Economic Integration
Free Trade Area: Group of countries Agree to abolish all trade restrictions &
barriers Or charge low rates of tariffs
Countries impose w.r.t trade with countries other than members of the group
![Page 4: Trade blocks & business centres](https://reader033.vdocument.in/reader033/viewer/2022061220/54bc97bc4a7959163e8b4959/html5/thumbnails/4.jpg)
Trade Blocks
4
Custom Unions: 2 basic features: Member countries abolish all restrictions
& barriers on trade among themselves or charge low rates of tariffs
They adopt uniform commercial policy of barriers & restrictions jointly w.r.t. trade with non-member countries
Different kinds of Economic Integration
![Page 5: Trade blocks & business centres](https://reader033.vdocument.in/reader033/viewer/2022061220/54bc97bc4a7959163e8b4959/html5/thumbnails/5.jpg)
Trade Blocks
5
Common Market: 3 basic characteristics: Allow free movement of HR & capital
among the member countries
Thus superior than customs union
Different kinds of Economic Integration
![Page 6: Trade blocks & business centres](https://reader033.vdocument.in/reader033/viewer/2022061220/54bc97bc4a7959163e8b4959/html5/thumbnails/6.jpg)
Trade Blocks
6
Economic Union: 4 basic characteristics: Achieve uniformity in monetary policy &
fiscal policy among the member countries
Economic union>common mkt>customs union>free trade area
Different kinds of Economic Integration
![Page 7: Trade blocks & business centres](https://reader033.vdocument.in/reader033/viewer/2022061220/54bc97bc4a7959163e8b4959/html5/thumbnails/7.jpg)
Trade Blocks
7
Advantages of integration..
![Page 8: Trade blocks & business centres](https://reader033.vdocument.in/reader033/viewer/2022061220/54bc97bc4a7959163e8b4959/html5/thumbnails/8.jpg)
Trade Blocks
8
European Union
Origin: European Coal & Steel Community (ECSC)
Formed by West Germany, France, Italy, Belgium, Netherlands & Lexumbourg – 1952
Aim: to eliminate import duties on coal, iron ore, steel & scrap
Facilty then extended by Treaty of Rome in 1957 & gave birth to European Economic Community
![Page 9: Trade blocks & business centres](https://reader033.vdocument.in/reader033/viewer/2022061220/54bc97bc4a7959163e8b4959/html5/thumbnails/9.jpg)
Trade Blocks
9
Requirements for joining: Country – to be European Democratic country
European Union
![Page 10: Trade blocks & business centres](https://reader033.vdocument.in/reader033/viewer/2022061220/54bc97bc4a7959163e8b4959/html5/thumbnails/10.jpg)
Trade Blocks
10
Objectives..
![Page 11: Trade blocks & business centres](https://reader033.vdocument.in/reader033/viewer/2022061220/54bc97bc4a7959163e8b4959/html5/thumbnails/11.jpg)
Trade Blocks
11
Activities..
![Page 12: Trade blocks & business centres](https://reader033.vdocument.in/reader033/viewer/2022061220/54bc97bc4a7959163e8b4959/html5/thumbnails/12.jpg)
Trade Blocks
12
Organization of EU
European Council – main administrative body of EU
Each member country – represented by – minister of this council
Each member holds presidency – 6 months Committee of permanent representatives –
Secretariat Committee also called “Corper” Makes all imp decisions Link between EU & member govt…
![Page 13: Trade blocks & business centres](https://reader033.vdocument.in/reader033/viewer/2022061220/54bc97bc4a7959163e8b4959/html5/thumbnails/13.jpg)
Trade Blocks
13
NAFTA
North American Free Trade Agreement – 1st January 1994
USA, Canada & Mexico Objectives..
Measures..
![Page 14: Trade blocks & business centres](https://reader033.vdocument.in/reader033/viewer/2022061220/54bc97bc4a7959163e8b4959/html5/thumbnails/14.jpg)
Trade Blocks
14
The Association of South-East Asian Nations ( ASEAN)
6 countries Singapore Brunei Malaysia Philippines Thailand Indonesia
![Page 15: Trade blocks & business centres](https://reader033.vdocument.in/reader033/viewer/2022061220/54bc97bc4a7959163e8b4959/html5/thumbnails/15.jpg)
Trade Blocks
15
Asean Free Trade Area (AFTA) Objectives: Encourage inflow of foreign investment
into this region Establish free trade area in member
countries Reduce tariff
![Page 16: Trade blocks & business centres](https://reader033.vdocument.in/reader033/viewer/2022061220/54bc97bc4a7959163e8b4959/html5/thumbnails/16.jpg)
Trade Blocks
16
AFTA & India..
![Page 17: Trade blocks & business centres](https://reader033.vdocument.in/reader033/viewer/2022061220/54bc97bc4a7959163e8b4959/html5/thumbnails/17.jpg)
Trade Blocks
17
European Free Trade Association (EFTA)
1959 Austria Norway Portugal Sweden Switzerland
Associate member countries are: Finland Iceland Great Britain Denmark
![Page 18: Trade blocks & business centres](https://reader033.vdocument.in/reader033/viewer/2022061220/54bc97bc4a7959163e8b4959/html5/thumbnails/18.jpg)
Trade Blocks
18
Objectives: To eliminate almost all tariffs among member
countries
To abolish trade restrictions regarding imports & exports among member countries
To enhance economic development, employement, incomes & living stds of people of member countries
Enable free trade in Western Europe
European Free Trade Association (EFTA)
![Page 19: Trade blocks & business centres](https://reader033.vdocument.in/reader033/viewer/2022061220/54bc97bc4a7959163e8b4959/html5/thumbnails/19.jpg)
Trade Blocks
19
Latin American Integration Association (LAIA)
Latin American Free Trade Association (LAFTA) Countries: Argentina Brazil Chile Mexico Paraguay Peru Uruguay Colombio Venenzula Bolivia
![Page 20: Trade blocks & business centres](https://reader033.vdocument.in/reader033/viewer/2022061220/54bc97bc4a7959163e8b4959/html5/thumbnails/20.jpg)
Trade Blocks
20
Objectives: To eliminate restrictions on trade among
the member countries To reduce the customs & tariffs &
eliminate them gradually
Latin American Integration Association (LAIA)
![Page 21: Trade blocks & business centres](https://reader033.vdocument.in/reader033/viewer/2022061220/54bc97bc4a7959163e8b4959/html5/thumbnails/21.jpg)
Trade Blocks
21
Organization Structure
![Page 22: Trade blocks & business centres](https://reader033.vdocument.in/reader033/viewer/2022061220/54bc97bc4a7959163e8b4959/html5/thumbnails/22.jpg)
Trade Blocks
22
Operations
Members prepare a list of goods on which they consider duty reductions
They negotiate once in 3 years for complete exemption on tariffs &
Decide the list of products eligible for complete exemption of tariffs…
![Page 23: Trade blocks & business centres](https://reader033.vdocument.in/reader033/viewer/2022061220/54bc97bc4a7959163e8b4959/html5/thumbnails/23.jpg)
Trade Blocks
23
South Asian Association for Regional CO-operation (SAARC)
December 6, 1985 India Bangladesh Bhutan Pakistan Maldives Nepal Sri Lanka
![Page 24: Trade blocks & business centres](https://reader033.vdocument.in/reader033/viewer/2022061220/54bc97bc4a7959163e8b4959/html5/thumbnails/24.jpg)
Trade Blocks
24
Objectives..
![Page 25: Trade blocks & business centres](https://reader033.vdocument.in/reader033/viewer/2022061220/54bc97bc4a7959163e8b4959/html5/thumbnails/25.jpg)
Trade Blocks
25
Organization Structure
![Page 26: Trade blocks & business centres](https://reader033.vdocument.in/reader033/viewer/2022061220/54bc97bc4a7959163e8b4959/html5/thumbnails/26.jpg)
Trade Blocks
26
Organization Structure
![Page 27: Trade blocks & business centres](https://reader033.vdocument.in/reader033/viewer/2022061220/54bc97bc4a7959163e8b4959/html5/thumbnails/27.jpg)
Trade Blocks
27
The Economic & Social Commission for Asia & The Pacific (ESCAP)
48 member countries & 10 associate countries
Sub-divided into: Pacific Island countries The developing ESCAP countries ASEAN Developed ESCAP countries China & newly industrializing countries South Asian Countries
![Page 28: Trade blocks & business centres](https://reader033.vdocument.in/reader033/viewer/2022061220/54bc97bc4a7959163e8b4959/html5/thumbnails/28.jpg)
Trade Blocks
28
Asia-Pacific Economic Co-Operation (APEC)
Forum for facilitation economic growth, co-operatio, trade & investment in Asia-Paacific region
Established in 1989 – to enhance economic growth & prosperity for the region & to strengthen the Asia-Pacific Community
Worked to reduce tariffs & other trade barriers across Asia-Pacific region
![Page 29: Trade blocks & business centres](https://reader033.vdocument.in/reader033/viewer/2022061220/54bc97bc4a7959163e8b4959/html5/thumbnails/29.jpg)
Trade Blocks
29
Free & Open trade & investment in Aisa-Pacific
Free Trade: helps economies to grow Create jobs Provides greater opportunities for
international trade Lower the costs of production & reduces
prices of goods & services
Asia-Pacific Economic Co-Operation (APEC)
![Page 30: Trade blocks & business centres](https://reader033.vdocument.in/reader033/viewer/2022061220/54bc97bc4a7959163e8b4959/html5/thumbnails/30.jpg)
Trade Blocks
30
MERCOSUR
Treaty of Asuncion signed by Argentina, Paraguay – march 26, 1991 created MERCOSUR
Chile & Bolivia – associate member – 1996
South America’s largest trade block
![Page 31: Trade blocks & business centres](https://reader033.vdocument.in/reader033/viewer/2022061220/54bc97bc4a7959163e8b4959/html5/thumbnails/31.jpg)
Trade Blocks
31
ANDEAN
Sub regional organization endowed with an international legal status
Made of Bolivia, Colombia, Ecuador, Peru, Venezuela