Single Global Market Essay

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The clothing sector will be chosen in this case to determine whether it is operate in a single global market. “A single market involves eliminating all the barriers to geographically relocating goods and factors of production” (al-Ubaydli, 2014). Using the EU as an example of a single market and its definition would be “ Treat the EU as one territory where people, money, goods and services interact freely to stimulate competition and trade, and improved efficiency” (Europa, 2012). The meaning for globalization is the increase flows in the exports and import of goods, finance activities, investment in physical assets, movement of workers, technology and ideas across countries (note). Therefore a single global market would means that flows such…show more content…
The NAFTA was implemented in 1994 and the combined textile and clothing export trade among 3 member countries had increased by 260 percent between 1993 and 2000 (sice). The most significant element in NAFTA was the elimination of tariffs on qualified products among members. The meaning for qualified is that the clothing products are One reason to form a FTA is to protect local exporter from other foreign competitor that might receive benefit under another free trade area and another reason is the progress in multilateral negotiation is slow so that it might be faster to form a free trade areas (Cooper). The more FTA form among countries will suggest that flows of trade are easier and faster. It is because member countries can enjoy preferential treatment such as duty-free and no quotas to cover a certain amount of clothing products. Some more examples would be the establishment of the EU and ASEAN. One significant improvement of ASEAN would be the agreement they had made with China and launched in 2004 (JTW). Evidences show that there has been an increased in the value of trade between members in ASEAN and China since 2004 (wto). The increase in trade value could be the results of the reduction in tariff impose on clothing product. There are still numbers of FTAs in the world and more are still under negotiations. The development of these FTAs could be due to the successful result made by previous countries and hence encourage others to build a free trade area. The more FTAs created the easier the flow of clothing products among countries and therefore it is consider being an important factor for the clothing sector operates in the
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