International Trade Assigment

3. Economic integration is the unification of economic
policies between different states through the partial
or full abolition of tariff and non-tariff restrictions on
trade taking place among them prior to their
integration.
The aim of economic integration is to reduce costs for
both consumers and producers, as well as to increase
trade between the countries taking part in the
agreement.

4. Globalization
Economic
Integration
CONTRIBUTE

5.  The creation of single market offers
significant opportunities.
 Additional opportunities arise from the
inherent lower cost of doing business in a single
market.
 Standard and simplified tax regimes.
Firms can serve whole market of the country
from a single location

6.  Ability to exchange goods and services
globally
 To export products to distant lands
 Opportunities to shift productions to other
countries (often to least cost locations)
 The advances in communications and
computing technologies.

7.  causes unemployment in industrialized
countries because firms move their factories to
places where they can get cheaper workers
 may lead to more environmental problems. A
company may want to build factories in other
countries because environmental laws are not as
strict as they are at home. Poor countries in the
Third World may have to cut down more trees so
that they can sell wood to richer countries.

8.  Financial problems . In the 1970s and 80s countries
like Mexico, Thailand, Indonesia or Brazil got a lot of
money from investors who hoped they could build
up new businesses there. These new companies
often didn’t work, so they had to close down and
investors pulled out their money.
 Some of the poorest countries in the world,
especially in Africa, may get even poorer. Their
population is not as educated as in developed
countries and they don’t have the new technology
that developed countries do.
 Human, animal and plant diseases can spread more
quickly through globalization.

9. Economic
Integration
Global Regional

10. World Trade Organization (WTO) was established on 1st
January 1995.
It is the only global international organization dealing with
the rules of trade between nations.
The WTO (World Trade Organization) is an association of
146 member countries, of the 190 countries in the world
today. There are another 30 countries that have observer
status, a step that precedes becoming a full-fledged member.
So almost all the countries in the world are members. There
are all types of countries in the WTO, capitalist, socialist,
rich and poor countries, very industrialized and also
developing countries.

11.  Raising standard of living & income.
 Promoting full employment
 Expanding production & trade, and optimum utilization of
resources.
 Introduce sustainable development
 Promoting trade flows.
 Establish procedures for solving trade dispute among members.

12. 1.Non – discrimination:-
 This principle is based on the concept of normal trade
relations-previously called most favored nation
(MFN).
 This rule required that the WTO members extend the
same favorable terms of trade to all the member that
they will extend to any single member.

13. 2.Transparency :-
 It is the pillar of WTO. All members are required to
publish their trade regulations
 To establish & maintain administrative decisions
affecting trade.
 To respond to the information by other members
and to notify changes in trade policies to WTO.

14. 3. Binding & Enforceable Commitments:-
 In WTO, when countries agree to open their market
for goods and services, they bind their
commitments.
4. Reciprocity :-
 It operates during negotiations with the objective of
obtaining mutually beneficial arrangements through
reciprocal reduction in tariffs binding.

15.  Administrating & implementing the multilateral &
plurilateral trade agreements which make up the WTO
 Acting as a forum for multilateral trade negotiation
 Seeking to resolve dispute
 Overseeing national trade policies
 Cooperating with other institutions involved in global
economic policy-making

16. refers to agreement between groups of countries
in geographic region to reduce and ultimately
remove tariff and non tariff barriers to the free flow
of goods, services and factors of production
between each other countries.
 Regional trade agreement are design to promote
free trade, but instead the word may be moving
toward a situation in which a number of regional
trade blocks compete against each other.

17. There are five levels of economic integration :
1. Free Trade Area (FTA)
encourages trade among its members by eliminating trade
barriers (tariffs, quotas, and other nontariff barriers [NTBs])
among them.
- European Free Trade Association (EFTA): Norway, Iceland,
Liechtenstein and Switzerland
- North American Free Trade Agreement (NAFTA): Canada,
Mexico and United States

18. 2. Custom Union
combines the elimination of internal trade barriers
among its members with the adoption of common
external trade policies toward nonmembers.
I. Andean Pact: between Bolivia, Columbia,
Ecuador and Peru
II. European Union or European Common Market:
between West Germany, France, Italy, Belgium,
the Netherland, and Luxembourgh

19. 3. Common Market
eliminating barriers that inhibit the movement of factors
of production (labor, capital, and technology) among its
members.
(similar to custom union but in addition allowing
movement of labor and capital among member nations)
- MEROSUR (between Brazil, Argentina, Paraguay, and
Uruguay )is aiming for common market status.
1. - EU (achieved this status in 1993)

20. 4. Economic Union
represents full integration of the economics of
two or more countries. It also involves free flows
of products and factors of productions between
members countries and adoption of common
currency, harmonization of member countries tax
rates and common monetary and fiscal policy.
I. European Union (EU) is an imperfect
economic union.
II. Benelux (Belgium, the Netherlands,
Luxembourg)

21. 5. Political Union
involves a central political apparatus that
coordinates the economic, social and foreign
policy of members state.
I. EU is headed towards at least partial
political union,
II. United States is an example of even closer
political union.

23. CONCLUSION
 Economic integration and globalization present new
opportunities for trade among nations. However, there
are also a challenges among these countries
especially those developing countries to cope with the
wave of globalization.

24. THANK YOU