Transcript Chapter 1 - MindMeister

Trade Agreements, Alliances,
and Organizations
 General Agreement on Tariffs and
Trades (GATT)
•
Water Trade agreement signed by 23 nations in
1947, provided a forum for tariff negotiations and a
place where international trade problems could be
discussed and resolved
 World Trade Organization (WTO)
•
International organization dealing with the rules of
trade between nations, evolved from GATT
© 2017 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner.
This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
1
Trade Agreements, Alliance, and
Organizations
• North American
Free Trade
Agreement (NAFTA)
 Agreement that eliminates
most tariffs and trade
restrictions on agricultural
and manufactured products
to encourage trade among
Canada, the U.S. and Mexico
© 2017 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner.
This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
2
NAFTA
• While controversial, NAFTA has become a positive
factor for U.S. firms
 Effective January 1, 1944
 Easier to invest in Mexico and Canada
 Protects intellectual property
 Expands trade by requiring equal treatment
 Simplifies country-of-origin rules
© 2017 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner.
This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
3
European Union and Asia-Pacific
Economic Cooperation
 European Union (EU)
•
•
A union of European nations established in 1958 to
promote trade among its members; one of the largest
single markets today
The EU has a GDP of $17 trillion+
 Asia-Pacific Economic Cooperation (APEC)
•
•
An international trade alliance that promotes open
trade and economic and technical cooperation
among member nations
Holds 55% of world GDP
© 2017 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner.
This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
4
APEC
• Asia-Pacific Economic Cooperation
– Companies associated with APEC have become
increasingly competitive and sophisticated in global
business in the past three decades
– Member nations:
 Australia Indonesia
Malaysia
Singapore
 China
Mexico
Peru
Japan
 Thailand Hong Kong
Russia
Canada
 Korea
Philippines
United States Chile
 New Zealand
Chinese Taipei Vietnam
 Brunei Darsussalam
Papua New Guinea
© 2017 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner.
This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
5
ASEAN, World Bank, and
International Monetary Fund
• Association of Southeast Asian Nations (ASEAN)
– A trade alliance that promotes trade and economic
integration among member nations in Southeast Asia
– Has a GDP of $2 trillion
• World Bank
– An organization established by the industrialized nations in
1946 to loan money to underdeveloped and developing
countries
• International Monetary Fund
– Established in 1947 to promote trade among member
nations by eliminating trade barriers and fostering financial
cooperation
© 2017 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner.
This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
6