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Multinational Market Regions and Market Groups

Multinational Market Regions and Market Groups. Chapter. 10. Successful Economic Union Requirements.  Economic Compatibility  Political Compatibility  Geographic Proximity  Cultural Compatibility Weakness in some must be balanced by strengths in others. 10-2. Irwin/McGraw-Hill.

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Multinational Market Regions and Market Groups

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  1. Multinational Market Regions and Market Groups Chapter 10

  2. Successful Economic Union Requirements  Economic Compatibility  Political Compatibility  Geographic Proximity  Cultural Compatibility Weakness in some must be balanced by strengths in others 10-2 Irwin/McGraw-Hill

  3. Patterns of Multinational Cooperation  Regional Cooperation Groups  Free Trade Area  Customs Union  Common Market  Political Union 10-3 Irwin/McGraw-Hill

  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 Malta 10-4 European Unity (EU) European Economic Area (EEA) * Visit http://europa.eu.int/ (select Abc and then Agenda 2000 for details on requirements of accession). Irwin/McGraw-Hill

  5. The European Economic Area: EU, EFTA, and Associates ICELAND EU EFTA SWEDEN NORWAY EC Associated FINLAND ATLANTIC OCEAN 10-5 Netherlands DENMARK UNITED KINGDOM IRELAND GERMANY BELGIUM Austria FRANCE Switz. ITALY Portugal SPAIN TURKEY MALTA GREECE Irwin/McGraw-Hill

  6. EC Institutions European Commission 10-6 Council of Ministries European Parliament European Court of Justice Irwin/McGraw-Hill

  7. A Comparison of the EU and NAFTA Population GNP Imports** Exports** ($ millions)* (per capita)* ($ millions) ($ millions) 10-7 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). Irwin/McGraw-Hill

  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. 10-8 For the most current information, visit www.europa.eu.int. Irwin/McGraw-Hill

  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. 10-9 Irwin/McGraw-Hill

  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 10-10 UKRAINE RUSSIAN REPUBLIC GEORGIA ARMENIA AZERBAIJAN KAZAKHSTAN UZBEKISTAN TURKMENISTAN KYRGYZSTAN TAJIKISTAN Irwin/McGraw-Hill

  11. Central European Free-Trade Area (CEFTA) Poland Hungary Slovakia Czech Republic Slovenia Romania 10-11 Irwin/McGraw-Hill

  12. North American Free-Trade Area (NAFTA) Canada 10-12 United States Mexico Irwin/McGraw-Hill

  13. North American Free-Trade Area Provisions  Market Access Non Tariff Barriers  Rules of Origin Customs Administration  Investment Services  Intellectual Property Standards  Government Procurement 10-13 Irwin/McGraw-Hill

  14. NAFTA Rules of Origin Rule Type Description Tariff shift rule Non-NAFTA imports undergo sufficient manufacture or processing to become products that can qualify under a different tariff classification. Value-content rule A set percentage of the value of the good must be North American (usually coupled with a tariff classification shift requirement). Some goods are subject to the value-content rule only when they fail to pass the tariff classification test because of non-NAFTA inputs. 10-14 * A complete description of the rules of origin can be found at www.mac.doc.gov/nafta/menu1.htm (select NAFTA Rules of Origin and Customs Information). Irwin/McGraw-Hill

  15. Southern Cone Free Trade Area (Mercosur) ArgentinaBolivia Brazil Chile Paraguay Uruguay 10-15 Irwin/McGraw-Hill

  16. Latin American Integration Association (LAIA)  Argentina Mexico  Bolivia Paraguay  Brazil Peru  Chile Uruguay  Columbia Venezuela  Ecuador 10-16 Irwin/McGraw-Hill

  17. Andean Common Market (ANCOM) Bolivia Columbia 10-17 Ecuador Peru Venezuela Panama (Assoc.) Irwin/McGraw-Hill

  18. Caribbean Community and Common Market (CARICOM) AntiguaMontserrat BarbudaSt. Kitts-Nevis BelizeAnguilla Dominica St. Lucia GrenadaSt. Vincent GuyanaTrinidad-Tobago Jamaica 10-18 Irwin/McGraw-Hill

  19. Central America Common Market (CACM) Guatemala 10-19 Costa Rica Nicaragua Honduras Irwin/McGraw-Hill

  20. The Future • NAFTA • SAFTA ??? • FTAA ??? 10-20 Irwin/McGraw-Hill

  21. Association of Southeast Asian Nations (ASEAN) Brunei Philippines Indonesia Singapore LaosThailand Malaysia Vietnam Myanmar 10-21 Irwin/McGraw-Hill

  22. ASEAN + 3 • Brunei • Singapore • Indonesia • Thailand • Laos• Vietnam • Malaysia China • MyanmarJapan • Philippines South Korea 10-22 Irwin/McGraw-Hill

  23. 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 22,952Americas* 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 10-23 *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). Irwin/McGraw-Hill

  24. Economic Community of West African States (ECOWAS)  Benin Liberia  Burkina Faso Mali  Cote d’ Ivoire Mauritania  Gambia Niger  Ghana Nigeria  Guinea  Guinea-Bissau 10-24 Irwin/McGraw-Hill

  25. Southern African Development Community (SADC)  Angola South Africa  Botswana Swaziland  Lesotho Tanzania  Namibia Zambia  Malawi Zimbabwe  Mauritius  Mozambique 10-25 Irwin/McGraw-Hill

  26. Afro-Malagasy Economic Union ▶ Benin ▶ Gabon ▶ Burkina Faso ▶ Mali ▶ Cameroon ▶ Mauritania ▶ Central African Republic ▶ Niger ▶ Chad ▶ Senegal ▶ People’s Repub. of the Congo ▶ Togo ▶ Cote d’Ivoire 10-26 Irwin/McGraw-Hill

  27. East African Customs Union ▶ Ethiopia ▶ Tanzania ▶ Kenya ▶ Uganda ▶ Sudan ▶ Zambia 10-27 Irwin/McGraw-Hill

  28. Maghreb Economic Community ▶ Algeria ▶ Tunisia ▶ Libya ▶ Morocco 10-28 Irwin/McGraw-Hill

  29. Economic Community of West African States (ECOWAS) ▶ Benin ▶ Guinea-Bissau ▶ Burkina Faso ▶ Liberia ▶ Cote d’Ivoire ▶ Mali ▶ Gambia ▶ Mauritania ▶ Ghana ▶ Niger ▶ Guinea ▶ Nigeria 10-29 Irwin/McGraw-Hill

  30. West Africa Economic Community ● West Africa Economic Community ▶ Senegal ▶ Mali ▶ Togo ▶ Mauritania ▶ Burkina Faso ▶ Niger ▶ Cote d’Ivoire ● Customs and Economic Union of Central Africa (CEUCA) ▶ Cameroon ▶ P. Rep. Of Congo ▶ C. Africa Repub. ▶ Gabon 10-30 Irwin/McGraw-Hill

  31. Customs and Economic Union of Central Africa (CEUCA) ▶ Cameroon ▶ P. Rep. Of Congo ▶ C. Africa Repub. ▶ Gabon 10-31 Irwin/McGraw-Hill

  32. Arab Common Market Iraq Kuwait 10-32 Jordan Syria Egypt Irwin/McGraw-Hill

  33. Economic Cooperation Organization (ECO) Pakistan Iran 10-33 Turkey Azerbaijan Turkmenistan Uzbekistan Irwin/McGraw-Hill

  34. 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) 10-34 Irwin/McGraw-Hill

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