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Lecture International business: Competing in the global marketplace (9/e): Chapter 9 - Charles W. L. Hill
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Lecture International business: Competing in the global marketplace (9/e): Chapter 9 - Charles W. L. Hill
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After studying this chapter you will be able to: Describe the different levels of regional economic integration; understand the economic and political arguments for regional economic integration; understand the economic and political arguments against regional economic integration; explain the history, current scope, and future prospects of the world's most important regional economic agreements; understand the implications for business that are inherent in regional economic integration agreements. | International Business 9e By Charles W.L. Hill McGraw-Hill/Irwin Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved. Chapter 9 Regional Economic Integration What Is Regional Economic Integration? Regional economic integration - agreements between countries in a geographic region to reduce tariff and non-tariff barriers to the free flow of goods, services, and factors of production between each other Question: Do regional trade agreements promote free trade? In theory, yes, but the world may be moving toward a situation in which a number of regional trade blocks compete against each other What Are The Levels Of Regional Economic Integration? A free trade area eliminates all barriers to the trade of goods and services among members A customs union eliminates trade barriers between members and adopts a common external trade policy A common market has no trade barriers between members, a common external trade policy, and the free movement of the factors of production LO1: Describe the different levels of regional economic integration. What Are The Levels Of Regional Economic Integration? An economic union has the free flow of products and factors of production between members, a common external trade policy, a common currency, a harmonized tax rate, and a common monetary and fiscal policy A political union involves a central political apparatus that coordinates the economic, social, and foreign policy of member states What Are The Levels Of Regional Economic Integration? Levels of Economic Integration Why Should Countries Integrate Their Economies? All countries gain from free trade and investment - regional economic integration is an attempt to exploit the gains from free trade and investment Linking countries together, making them more dependent on each other creates incentives for political cooperation and reduces the likelihood of violent conflict gives countries greater political clout when dealing with other nations LO2: Understand the | International Business 9e By Charles W.L. Hill McGraw-Hill/Irwin Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved. Chapter 9 Regional Economic Integration What Is Regional Economic Integration? Regional economic integration - agreements between countries in a geographic region to reduce tariff and non-tariff barriers to the free flow of goods, services, and factors of production between each other Question: Do regional trade agreements promote free trade? In theory, yes, but the world may be moving toward a situation in which a number of regional trade blocks compete against each other What Are The Levels Of Regional Economic Integration? A free trade area eliminates all barriers to the trade of goods and services among members A customs union eliminates trade barriers between members and adopts a common external trade policy A common market has no trade barriers between members, a common external trade policy, and the free movement of the factors of .
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Lecture International business: Competing in the global marketplace (9e): Chapter 9 - Charles W. L. Hill
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