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trading blocs research paper
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Business is one of the factors that shapes the competition of a country economically, political and socially. Countries normally want to enter into pact with countries that they believe can benefit them symbiotically in terms of trade (Chang & Winters 2002, p.899). However, trade among countries can also take shape with regards to the region; this is where the trading blocs come in. Trading blocs are attributed by two principle characteristics, that is; the reduction or removal of trading barriers and effective unfairness in a sense that such kind of liberalization between member states does not extend to nations outside that trading bloc. In light of these realizations, this essay assesses four major things which include describing six types of economic integration, research on the Gulf cooperation council, discuss three benefits and three costs frequently associated with adoption of Certificate of Origin scheme.
The Major Categories of Trading Blocs
A Trading bloc is defined as a group of nations that come together in some sort of agreement with an intention to enhance trade amongst them or to benefit economically on the cooperation based on economic integration (Dalimov 2009, p.12). some of the major trading blocs are North American Free Trade Agreement (NAFTA), European Union (EU), The Association of South East Asian Nations (ASEAN) and Southern African Development Community (SADC) among others. On the other hand, Economic integration is defined as the unification of the economic policies among various countries through full or partial elimination of non-tariff and tariff constraints on trade activities amongst them before the integration (Dalimov 2011, p.276). This is carried with an aim of lowering the prices...
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Mansfield, E & Milner, H 2005, The New Wave of Regionalism in Diehl, Paul F.
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Jersey, Pearson Prentice Hall, p. 450.
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The least advanced level is the Free Trade Area. The features of this level is that reduced tariff barriers between signatories, which at times are abandoned altogether and there is free movement of labour and capital and the non-member countries have an independent set of tariffs against member countries. The second level of economic integration is the Customs Union. This is a Free Trade Agreement plus a common external tariff. Member countries agree to reduce tariff barriers among themselves and they have in common, this is referred to as tax harmonisation.
The European Union cooperation all started with economic integration. Since the beginning of the ECSC in 1952 until now one of the major forces but also one of the major weaknesses of the EU has been their will for a common market and a monetary union. The single market was achieved in 1992 with the entrance into function of the Maastricht treaty. This treaty greatly influenced how states would have to deal with external border control and the free movement of the people because what the Maastricht treaty did was not only opening a single market, but also allowing people, goods and services to move freely across European Union member states. Economic integration has explained by Nevin has usually 5 level which goes from he lowest o he highest level of cooperation. The first level of integration is the preferential tariff which only allows st...
Riegel, Christian A Sense of Place: Re-evaluating Regionalism in Canadian and American Writing Calgary : University of Alberta, 1997
Few governments will argue that the exchange of goods and services across international borders is a bad thing. However, the degree to which an international trading system is open may come into contest with a state’s ability to protect its interests. Free trade is often portrayed in a good light, with focus placed on the material benefits. Theoretically, free trade enables a distribution of resources across state lines. A country’s workforce may become more productive as it specializes in products that it has a comparative advantage. Free trade minimizes the chance that a market will have a surplus of one product and not enough of another. Arguably, comparative specialization leads to efficiency and growth.
Lipsey, Richard G.. "Will there be a Canadian-American Free Trade Association? ." The World Economy 9 (2008): 218-238.
Through this paper a comparative representation on the definition and background of the evolution of critical regionalism will be explored. Moreover through this essay, the arguments of how ‘Ando’s’ architectural approach is of a ‘critical regionalist’ manner will be examined significantly.
The practice of trading and bartering of commodities has been around since the beginning of time. The concept of commodity chains was developed by Terence Hopkins and Immanuel Wallerstein in an attempt to understand the spread of capitalism and economic change. (Bair & Werner, 2011) The emergence of capitalism has brought about an anthropogenic phenomenon know as globalization as a means to create profit and in doing so altered competitive dynamics (Gereffi 1999). Globalisation of economies has lead to the construction of chains of production, distribution and consumption transcending borders across the world. Gereffi (1994) identified these chains as Global Commodity Chains, using them as a method to analyze the global economy.
The political force moved away from the painstakingly and time-consuming technique of multilateral tariff negotiations to smaller regional and bilateral provisions - the Regional Trade Agreement. In these arrangements; members accord preferential treatment , basically agreeing to liberalize the exchange of goods and services amongst each another giving regard to certain trade barriers. RTA is not the first-hand way of trade liberalization though. Initially, when multilateral trade discussions used to happen, two-sided and multiparty FTA”s filled the vacuum. There were restrictions from stringent and premeditated trade arrangements earlier, thus a lot of states are now moving towards freer trade for their own benefits.
The article examines some of the influential theories in the domain of international trade including hyperglobalisation and comparative advantage. The publisher was keen to demonstrate how the theories need to be embraced since hyperglobalisation promotes investments flows from partners pursuing such trading agreements. The trading partners can still reduce their operation cost such as transportation while still navigating the complexities of hyperglobalisation. The author also endeavored to demystify the terminology of comparative advantage by issuing examples and previous concerns reported on the subject. It has been hailed that the traders often traded as per their factor endowments by concentrating on spheres of their specialty. The author also hinted to the readers that the theory of comparative advantage is a major concept since it is the first theory that economics students are briefed on. Arguments in support of the theory reveals that countries that have this level of visibility stand to benefit massively once they specialize in areas of their specialty. He purp...
Many other countries operate special customs areas, such as free trade zones (also referred to as FTZs) and export processing zones. U.S. exporters and other interested parties should contact the embassy or customs officials of individual countries for specific procedures, requirements, and arrangements. Although there may be several similarities, it should not be assumed that a free trade zone overseas operates under the same principles as a foreign trade zone in the United States. Contact information for foreign embassies is available by calling the Trade Information Center at 800- USA-TRADE, or by visiting www.export.gov/tic. Many U.S.freight forwarders also have working relationships with trade zones overseas and can provide information on the documentation required to ship goods through them.
After the failed International Trade Organization, Rodrik discusses the Bretton Woods Agreement, the transition from the General Agreement on Tariffs and T...
According to Hill, regional economic integration refers to "agreements among countries in a geographic region to reduce, and ultimately remove, tariff and nontariff barriers to the free flow of goods, services, and factors of production between each other." The prevailing economic argument for regional economic integration is that it creates economic synergy by allowing each country to focus only on what it is most efficient at producing.
Salehzedah, Zohre and Henneberry, Shida Restagari "The Economic Impacts of Trade Liberalization and Factor the Case of the Philippines." Journal of Policy Modeling v24.
And also it makes a good relationship between two countries. I know about the culture and people of other countries and also about that demand their desire. And just because of this people demand every businesses wants to supply their products and services to the other countries. I also know about that through this assignment most of the countries members of different free trade agreement. Trading blocs is group of countries within geographical region that protect themselves from imports from non-members. So that one is the most important knowledge I got through this assignment which helps me in my future to do something new.
Trade creation occurs when low cost producers within free trade area replace high cost domestic producers. These agreements create more opportunities for countries to trade with one another by removing the trade barriers and investment. Trade creation allows member countries for a wider selection of goods and services not previously available. They can acquire goods and services at a lower cost after trade barriers due to lowered tariffs or removal of tariffs which will encourage more trade between member countries the balance of money spend from cheaper goods and services, can be used to buy more products and services. Regional economic integration significantly contributes to the relatively high growth rates in the nation. By removing trade barriers between members countries the factor of production can be move