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Unit 2 Enterprises Should Know Trade Pact Rules 曹丽燕 广东科学技术职业学院Lucy.cao@126.com Specialization Among Nations Absolute Advantage A country has an absolute advantage if it has an monopolistic position or it can produce the product at the lowest cost. Comparative Advantage A country has a comparative advantage in a product if if can supply that product at a lower cost, compared to other nations. Multinational Economic Communities Free Trade Area, e.g, NAFTA 北美自由贸易区 Form of economic integration in which participants agree to trade among themselves without tariffs or trade restrictions. Customs Union, e.g, FTAA 美洲自由贸易区 Form of economic integration in which member nations establish a free trade area and impose a uniform tariff structure for trade with nonmember nations. Common Market, e.g, EU 欧盟 Form of economic integration that maintains a customs union and seeks to bring all trade rules into agreement. common market customs unionfree trade area GATT (General Agreement On Trade and Tariff) GATT, which was established in 1947 in Geneva with 23 member countries, was an international accord that sponsored a series of negotiations on tariffs and trade restrictions. After its establishment, it had held 8 rounds of multilateral trade negotiations. GATT: 8 rounds of negotiations The first round was held in Geneva in 1947 with the attendance of 23 countries , reaching the target of reducing the tariff on 56% of the imported goods by an average 35% The second round was held in France in 1949 with the attendance of 33 countries. The third round was held in UK in 1951 with the presence of 39 countries. The fourth round was held in Geneva in 1956 , which was only attended by 28 countries due to the interference of US government. GATT: 8 rounds of negotiations The fifth round was performed in Geneva from1960 to 1961, with the attendance of 45 countries. The sixth round was held in Geneva from 1964 to 1965 in Geneva, which passed the first International Anti-dumpi
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