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Y376 International Political Economy January 30, 2012
Types of  Regional Integration ,[object Object],[object Object],[object Object],[object Object],Increasing difficulty
Examples ,[object Object],[object Object],[object Object],[object Object]
Table 7-3. Important Regional Trade Agreements   Region Name Acronym Europe European Union EU European Free Trade Association EFTA North America North American Free Trade Agreement NAFTA Latin America and the Caribbean Latin American Integration Association LAIA Andean Common Market ANCOM Central American Common Market CACM Southern Cone Common Market Mercosur Caribbean Community CARICOM Africa Arab Maghreb Union UMA Economic Community  of Central African States ECCAS Central African Customs and Economic Union CACEU Economic Community of West African States ECOWAS West African Economic Community CEAO Southern African Development Community SADC Asia Association of South-East Asian Nations ASEAN Asia Pacific Economic Cooperation APEC Economic Cooperation Organization ECO South Asian Association for Regional Cooperation SAARC Middle East Gulf Cooperation Council GCC
The European Union ,[object Object],[object Object],[object Object],[object Object],[object Object]
Members of the EU 1952  Belgium, France, Germany, Italy, Luxembourg, Netherlands 1973  Denmark, Ireland, United Kingdom 1981  Greece  1986  Portugal, Spain 1995  Austria, Finland, Sweden 2004  Cyprus, Czech Republic, Estonia, Hungary, Latvia, Lithuania, Malta, Poland, Slovakia, Slovenia 2007  Bulgaria, Romania
Euro Zone Currency Union Funny video
Trade Creation  vs.  Trade Diversion ,[object Object],[object Object],[object Object]
Fortress Europe vs. Fortress North America ,[object Object],[object Object],Video (humorous) on the origins of NAFTA
Why Hasn’t Regional Integration Been Successful Outside Europe? ,[object Object],[object Object],[object Object]
Multinational Corporations (MNCs) ,[object Object],Synonyms: transnational corporation (TNC), multinational enterprise (MNE), transnational enterprise (TNE)
The Transnationality of MNCs ,[object Object],[object Object],[object Object],[object Object],[object Object]
UNCTAD ’s Transnationality Index (TNI) by Industry, 2005 ,[object Object],[object Object],[object Object],[object Object]
Example: IBM ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Source:  IBM Annual Report 2006
Example:  Samsung  (Korea) ,[object Object],[object Object],[object Object],Samsung is not as globally organized As IBM.
Hierarchy of MNC Activities ,[object Object],[object Object],[object Object],[object Object]
The OLI Model of Foreign Direct Investment ,[object Object],[object Object],[object Object],Market power that derives from ownership of special  knowledge Advantages of a particular foreign location Firm must prefer FDI to other ways of conducting foreign business (e.g., exports, licensing) Source: Various works by John Dunning .
Product-Cycle Theory Maturity Growth Decline Time Sales Source: Raymond Vernon.
Definition of Foreign Direct Investment ,[object Object]
Two Main Reasons to Invest Abroad via FDI ,[object Object],[object Object],Most North-North FDI is horizontal; most North-South FDI is vertical.
Greenfield vs. Mergers and Acquisitions ,[object Object],[object Object],[object Object],Daimler-Benz  purchase of  Chrysler
The Role of Mergers and Acquisitions
Outflows of  FDI from Developed and Developing Nations, in Billions of Current Dollars, 1970-2010 Source: United Nations Conference on Trade and Development,  World Investment Report .
Inflows of  FDI into Developed and Developing Nations, in Billions of Current Dollars, 1970-2010 Source: United Nations Conference on Trade and Development,  World Investment Report .
Figure 4-1. Outward Stock of Direct Foreign Investment in Billions of Dollars, 1960-2006 Sources: UNCTC,  Transnational Corporations in World Development  (New York: UN, 1988); UNCTAD,  World Investment Report  (Geneva: UNCTAD, 1999 and 2007).
Figure 4-5. Inflows of FDI into the Big Five Industrialized Countries, in Billions of Current Dollars, 1965-2006 Source: World Bank,  World Data 1994 CD-ROM  (Washington, D.C.: World Bank, 1994); UNCTAD,  World Investment Report  (Geneva: UNCTAD, 2007).
Figure 4-7. FDI Inflows into Developing and Transition Economies by Region, in Billions of Dollars, 1970-2006 Source: UNCTAD, World Investment Report 2007 (Geneva: UNCTAD, 2007).
Number of MNCS from Developed and Developing Economies
Key Facts ,[object Object],[object Object],[object Object],[object Object]
How the US-Japan Trade Dispute in Autos Led to Greater FDI Flows from Japan to US ,[object Object],[object Object],[object Object]
Exports vs. Local Production of Automobiles in the United States by Japanese Firms, 1980-1990, in Thousands of Vehicles Source:  Japan Automobile Manufacturers Association .
 
 

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Ipe06

  • 1. Y376 International Political Economy January 30, 2012
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  • 4. Table 7-3. Important Regional Trade Agreements Region Name Acronym Europe European Union EU European Free Trade Association EFTA North America North American Free Trade Agreement NAFTA Latin America and the Caribbean Latin American Integration Association LAIA Andean Common Market ANCOM Central American Common Market CACM Southern Cone Common Market Mercosur Caribbean Community CARICOM Africa Arab Maghreb Union UMA Economic Community of Central African States ECCAS Central African Customs and Economic Union CACEU Economic Community of West African States ECOWAS West African Economic Community CEAO Southern African Development Community SADC Asia Association of South-East Asian Nations ASEAN Asia Pacific Economic Cooperation APEC Economic Cooperation Organization ECO South Asian Association for Regional Cooperation SAARC Middle East Gulf Cooperation Council GCC
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  • 6. Members of the EU 1952 Belgium, France, Germany, Italy, Luxembourg, Netherlands 1973 Denmark, Ireland, United Kingdom 1981 Greece  1986 Portugal, Spain 1995 Austria, Finland, Sweden 2004 Cyprus, Czech Republic, Estonia, Hungary, Latvia, Lithuania, Malta, Poland, Slovakia, Slovenia 2007 Bulgaria, Romania
  • 7. Euro Zone Currency Union Funny video
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  • 18. Product-Cycle Theory Maturity Growth Decline Time Sales Source: Raymond Vernon.
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  • 22. The Role of Mergers and Acquisitions
  • 23. Outflows of FDI from Developed and Developing Nations, in Billions of Current Dollars, 1970-2010 Source: United Nations Conference on Trade and Development, World Investment Report .
  • 24. Inflows of FDI into Developed and Developing Nations, in Billions of Current Dollars, 1970-2010 Source: United Nations Conference on Trade and Development, World Investment Report .
  • 25. Figure 4-1. Outward Stock of Direct Foreign Investment in Billions of Dollars, 1960-2006 Sources: UNCTC, Transnational Corporations in World Development (New York: UN, 1988); UNCTAD, World Investment Report (Geneva: UNCTAD, 1999 and 2007).
  • 26. Figure 4-5. Inflows of FDI into the Big Five Industrialized Countries, in Billions of Current Dollars, 1965-2006 Source: World Bank, World Data 1994 CD-ROM (Washington, D.C.: World Bank, 1994); UNCTAD, World Investment Report (Geneva: UNCTAD, 2007).
  • 27. Figure 4-7. FDI Inflows into Developing and Transition Economies by Region, in Billions of Dollars, 1970-2006 Source: UNCTAD, World Investment Report 2007 (Geneva: UNCTAD, 2007).
  • 28. Number of MNCS from Developed and Developing Economies
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  • 31. Exports vs. Local Production of Automobiles in the United States by Japanese Firms, 1980-1990, in Thousands of Vehicles Source: Japan Automobile Manufacturers Association .
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