CHAPTER 8 Economic Integration Text by Profs M
CHAPTER 8 Economic Integration Text by Profs. M. Czinkota, I. Ronkainen, and M. Moffett Multimedia Presentation by Prof. Milton Pressley The University of New Orleans milton. pressley@uno. edu © 2002 Thomson Learning, Inc.
LEARNING OBJECTIVES • To review types of economic integration • • • among countries To examine the costs and benefits of integrative arrangements To understand the structure of the european union and its implications for firms within and outside Europe To explore for emergence of other integration agreements, especially in the Americas and Asia © 2002 Thomson Learning, Inc.
Levels of Economic Integration • Trading Bloc: preferential economic arrangement among a group of countries © Photo. Disc © 2002 Thomson Learning, Inc.
© 2002 Thomson Learning, Inc.
Levels of Economic Integration • The Free Trade Area • The Customs Union • The Common Market • Factor Mobility • Single European Act • The Economic Union • Political Union © Photo. Disc © 2002 Thomson Learning, Inc.
Arguments Surrounding Economic Integration • Trade Creation • Trade Diversion • Reduced Import Prices • Increased Competition and Economies of Scale • Internal Economies of Scale • External Economies of Scale • High Factor Productivity • Regionalism Versus Nationalism © Photo. Disc © 2002 Thomson Learning, Inc.
European Integration • Economic Integration in Europe From 1948 to the Mid-1980 s • Treaty of Rome © Photo. Disc © 2002 Thomson Learning, Inc.
© 2002 Thomson Learning, Inc.
© 2002 Thomson Learning, Inc.
European Integration • Common Agricultural Policy (CAP) • The European Union Since the Mid-1980 s • 1992 White Paper • Single European Act • Economic and Monetary Union (EMU) • Maastricht Treaty • European Union • Organization of the EU © Photo. Disc © 2002 Thomson Learning, Inc.
Figure 8. 1 – Organization and Decision Making of the EU © 2002 Thomson Learning, Inc.
European Integration • Implications of the Integrated European Market © Photo. Disc © 2002 Thomson Learning, Inc.
© 2002 Thomson Learning, Inc.
European Integration • Fortress Europe © Photo. Disc © 2002 Thomson Learning, Inc.
North American Economic Integration • U. S. – Canada Free Trade Agreement • North American Free Trade Agreement • Maquiladoras © Photo. Disc © 2002 Thomson Learning, Inc.
Other Economic Alliances • Import Substitution • Integration in Latin America • Caribbean Basin Initiative (CBI) • Free Trade Area of the Americas (FTAA) • Integration in Asia • Integration in Africa and the Middle East © Photo. Disc © 2002 Thomson Learning, Inc.
© 2002 Thomson Learning, Inc.
Other Economic Alliances • Economic Integration and the • International Manager Cartels and Commodity Price Agreements • Cartel © Photo. Disc © 2002 Thomson Learning, Inc.
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