MGC2120 Lecture Notes - Trade Bloc, Trade Creation, Economic Integration
13 Sep 2013
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Document Summary
International business corporations among nations (lecture note) Us: there was no need for trade, however, stronger now (trade to asians) Agreement between countries to reduce tariffs. It does promote free trade, but moving to regional trade blocs compete against each other. Bi- lateral: most common, come to trade agreements (selectedaspects of the eco) Regional: eu, multiple countries that go far beyond tradeagreements, much more complext. Multi- regional: more countries come together. International: no foreign exchange. High- level: eu, multiple elements of the region has been integrated into one. We are becoming similar (social/cultural), we are converginginto one model. **have to make your own perception of what"shappening out there in the culture** its difficult to make multiculturalism work. Compete easier as a group. Trade creation - advantages from free trade area. Diversion - no create more trade, things just get cheaper. Levels of economic integration: green area is the least integrated.
