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Chapter 10

Chapter 10. Multinational Market Regions and Market Groups. Successful Economic Union Requirements.  Economic Compatibility  Political Compatibility  Geographic Proximity  Cultural Compatibility Weakness in some must be balanced by strengths in others.

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Chapter 10

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  1. Chapter 10 Multinational Market Regions and Market Groups

  2. Successful Economic Union Requirements  Economic Compatibility  Political Compatibility  Geographic Proximity  Cultural Compatibility Weakness in some must be balanced by strengths in others

  3. Patterns of Multinational Cooperation  Regional Cooperation Groups  Free Trade Area  Customs Union  Common Market  Political Union

  4. European Trade Areas - 1997* European Community (EC) European Free Trade Area (EFTA) Belgium Italy Iceland Norway Denmark Luxembourg Liechtenstein Switzerland France The Netherlands Germany Portugal Greece Spain Ireland United Kingdom EC Countries and EU Countries and Austria Norway Iceland Finland Sweden In Membership NegotiationsSecond Tier-Awaiting Evaluation Cypress Hungary Bulgaria Romania Czech Republic Poland Latvia Slovakia Estonia Slovenia Lithuania European Unity (EU) European Economic Area (EEA) * Visit http://europa.eu.int/ (select Abc and then Agenda 2000 for details on requirements of accession).

  5. The European Economic Area: EU, EFTA, and Associates ICELAND EU EFTA NORWAY SWEDEN EC Associated FINLAND ATLANTIC OCEAN Netherlands DENMARK UNITED KINGDOM IRELAND GERMANY BELGIUM Austria FRANCE Switz. ITALY Portugal SPAIN TURKEY MALTA GREECE

  6. EC Institutions European Commission Council of Ministries European Parliament European Court of Justice

  7. A Comparison of the EU and NAFTA Population GNP Imports** Exports** ($ millions)* (per capita)* ($ millions) ($ millions) EU* 373.5 $ 8,180 1,899,466 1,927,914 NAFTA 387.4 8,061 1,014,211 852,536 * Includes 15 Countries. **Includes intra-member trade. SOURCES: “Indicators of Market Size for 115 Countries,” Crossborder Monitor, August 27, 1997; and International Marketing Data and Statistics, 1997 (London: Euromonitor, 1997).

  8. Treaty of Amsterdam - Objectives  To place employment and citizens’ rights at the heart of the Union.  To sweep away the last remaining obstacles to freedom of movement and to strengthen security.  To give Europe a stronger voice in world affairs.  To make the Union’s institutional structure more efficient with a view to enlarging the Union. SOURCES: details con be found in “The Four Major Objectives of the New Treaty for Europe.” at http://europa.eu.int

  9. Level of Involvement with the EC 1. Firms based in Europe with well-established manufacturing and distribution operations in several European countries. 2. Firms with operations in a single EC country. 3. Firms that export manufactured goods to the EC from an offshore location. 4. Firms that have not actively exported to EC countries.

  10. Twelve republics, each with their own legislatures Twenty smaller “autonomous republic” or homelands for various ethnic groups Commonwealth of Independent States ARCTIC OCEAN BELARUS MOLDOVA UKRAINE RUSSIAN REPUBLIC GEORGIA ARMENIA AZERBAIJAN KAZAKHSTAN UZBEKISTAN TURKMENISTAN KYRGYZSTAN TAJIKISTAN

  11. Central European Free-Trade Area (CEFTA) Poland Hungary Slovakia Czech Republic Slovenia Romania

  12. North American Free-Trade Area (NAFTA) Canada United States Mexico

  13. North American Free-Trade Area Provisions  Market Access  Non Tariff Barriers  Rules of Origin  Customs Administration  Investment  Services  Intellectual Property  Standards  Government Procurement

  14. Southern Cone Free Trade Area (Mercosur) Argentina Bolivia Brazil  Chile Paraguay  Uruguay

  15. Latin American Integration Association (LAIA)  Argentina  Mexico  Bolivia  Paraguay  Brazil  Peru  Chile  Uruguay  Columbia  Venezuela  Ecuador

  16. Andean Common Market (ANCOM) Bolivia Columbia Ecuador Peru Venezuela

  17. Caribbean Community and Common Market (CARICOM) Antigua Montserrat Barbuda St. Kitts-Nevis Belize Anguilla Dominica St. Lucia Grenada St. Vincent Guyana Trinidad-Tobago Jamaica

  18. Association of Southeast Asian Nations (ASEAN) Brunei  Philippines Indonesia  Singapore Laos Thailand Malaysia  Vietnam Myanmar

  19. Comparison of Exports Among Members of APEC and the EC Population, 1989 Exports, 1990 Exports, 1995 GNP, 1996 (millions) (U.S. $ millions) (U.S. $ millions) (U.S. $ billions) APEC 2,235 732,869 770,097 22,952America’s* 406 306,486 311,085 7,989Asia 1812 399,455 419,901 6,447Oceania 22 26,928 34,111 343 EC 374 515,915 628,606 8,180 * includes: U.S., Canada, Mexico, and Chile. SOURCES: IMF: International Financial Statistics, Direction of Trade; OECD: National Account, EC Committee: “Indicators of Market Size for 115 Countries,” Crossborder Monitor, August 27, 1997; and International Marketing Data and Statistics. 1997 (London: Euromonitor, 1997).

  20. Economic Community of West African States (ECOWAS)  Benin  Liberia  Burkina Faso  Mali  Cape Verde  Mauritania  Gambia  Niger  Ghana  Nigeria  Guinea  Senegal  Guinea-Bissau  Sierra-Leone  Ivory Coast  Togo

  21. Southern African Development Community (SADC)  Botswana  South Africa  Lesotho  Swaziland  Namibia  Tanzania  Malawi  Zambia  Mauritius  Zimbabwe  Mozambique

  22. Arab Common Market Iraq Kuwait Jordan Syria Egypt

  23. Economic Cooperation Organization (ECO) Pakistan Iran Turkey Azerbaijan Turkmenistan Uzbekistan

  24. Future Multinational Trade Groups  United States/Japan  Hong Kong/Taiwan/China  Asia-Pacific Rim Countries  Hong Kong/Taiwan/Coastal Provinces of Southern China  Western Hemisphere Free Trade Area  Transatlantic Free Trade Area (United States and European Union)

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