global marketing chapter 3 – Flashcards

-general agreement on tarrifs and trades -treaty among nations to promote trade among members established in 1947 -handled trade disputes -lacked enforcement power -replaced by WTO in 1995

-forum for trade-related negotiations among 153 members -based in Geneva -serves as dispute mediator through DSB - has enforcement power and can impose sanctions

-many countries seek to lower barriers to trade within their regions -PTAs give partners special treatments and may discriminate against others - over 300 PTAs have been notified to the WTO

- two or more countries agree to abolish tariffs and other barriers to trade amongst themselves -countries continue independent trade policies with countries outside agreement -rules of origin requires restricat transshipment of goods from the country with the lowest tariff to another

-canada united states mexico -established free trade area 1994 -all 3 nations pledge to promote economic growth through tariff reductions and expanded trade and investment -no common external tarrifs -restrictions on labor and other movements remain`

-evolution of Free Trade Area - includes the elimination of internal barriers to trade -and establishes common external barriers to trade

- includes the elimination of internal barriers to trade (as in free trade area) -and establishes common external barriers to trade (as in customs union) -and allows for the free movement of factors of production, such as labor, capital, and information (as in common market)

- includes the elimination of internal barriers to trade (as in free trade area) -and establishes common external barriers to trade (as in customs union) -and allows for the free movement of factors of production, such as labor, capital, and information (as in common market) -and coordiantes and harmonizes economic and social policy within the union

-creation of unified central bank -use of single currency -common policies on issues such as agriculture, social policy, transport, competition, mergers, taxation -requires extensive political unity -would lead to a central government in time

-initially began with the 1958 treaty of rome - objective is to harmonize national laws and regulations so that goods, services, people, and money could flow freely across national boundaries

-54 nations over 3 distinct areas (republic of south africa, north africa, black/sub-saharan africa) -Mena: middle east and north africa (viewed as regional entity)