国际商务PPT第九章.ppt

International Business 9e By Charles W.L. Hill Chapter 9 Regional Economic Integration What Is Regional Economic Integration? Regional economic integration - agreements between countries in a geographic region to reduce tariff and non-tariff barriers to the free flow of goods, services, and factors of production between each other Question: Do regional trade agreements promote free trade? In theory, yes, but the world may be moving toward a situation in which a number of regional trade blocks compete against each other What Are The Levels Of Regional Economic Integration? A free trade area eliminates all barriers to the trade of goods and services among member countries European Free Trade Association (EFTA) - Norway, Iceland, Liechtenstein, and Switzerland North American Free Trade Agreement (NAFTA) - U.S., Canada, and Mexico What Are The Levels Of Regional Economic Integration? A customs union eliminates trade barriers between member countries and adopts a common external trade policy Andean Community (Bolivia, Columbia, Ecuador, and Peru) A common market has no barriers to trade between member countries, a common external trade policy, and the free movement of the factors of production MERCOSUR (Brazil, Argentina, Paraguay, and Uruguay) What Are The Levels Of Regional Economic Integration? An economic union has the free flow of products and factors of production between members, a common external trade policy, a common currency, a harmonized tax rate, and a common monetary and fiscal policy European Union (EU) A political union involves a central political apparatus that coordinates the economic, social, and foreign policy of member states the EU is headed toward at least partial political union, and the U.S. is an example of even closer political union What Are The Levels Of Regional Economic Integration? Levels of Economic Integration Why Should Countries Integrate Their Economies? All countries gain from free trade and investment regiona