GMS 723 Lecture Notes - Lecture 2: Eurozone, Capital Market, Economic Integration
12 Feb 2017
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Bilateral integration: two countries cooperate closely, usually in the form of tariff reductions (u. s and canada) Regional integration: a group of countries locations in the same geographic proximity decide to cooperate (eu) Global integration: countries worldwide cooperate through the wto (world trade. The wto makes trade easier for every country, their end goal to make export duty free in every country. Eu has moved from economic to political union. In place sine 1994, is a key aspect of international trade. Pros: an opportunity to create an enlarged and more efficient productive base for the entire region. The origin of nafta: absolute advantage (sell what you can produce better than anyone: ex. Cons: u. s and canadian firms may move some production to mexico to take advantage of lower labour costs. Why pay for one worker in canada when you can pay -4 in mexico. Canada: secure access to a large consumer market.
