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15 Cards in this Set

  • Front
  • Back
Know the term used to identify groups ofcountries that seek mutual economic benefit from reducing interregional tradeand tariff barriers. p284
Multinational market regions, most important today
Know and be able to explain the primary waymarket opportunities are enlarged by economic unions. pg 285
Preferential treatment for members, barriers against outsiders, agreement methods
Be able to explain what “state sovereignty”means and why it is so important to countries considering joining some sort oftrade organization. pg 285-286
Political compatibility before giving up independence for trade benefits
There are five sortsof multinational cooperation – from most basic to the most fully integratedform of regional cooperation. Be able tolist and describe each. (Note that there will be several questions over thismaterial – so be sure to be able to describe each form. pg 287-288
Regional Cooperation Groups, Free Trade Area, Customs Union, Common Market, Political Union
Know which treatyestablished the European Economic Community (EEC) and in what year. pg 288
Treaty of rome, 1957
Know what theMaastricht Treaty created. pg 288-291
Called for a common currency, established targets for monetary union, called of political union of member nations.
Know the four largestEuropean Union countries are in population (see Exhibit 10.1) in order. pg 289
Germany, France, UK, Italy, Spain
Know what organizationserves as the EU’s Supreme Court. pg 293
European court of justice
Know and be able toexplain what the “Treaty of Amsterdam” involved. pg 294
Expansion, euro/emu conversion, one voice of foreign policy, increased authority of EU institutions.
Know how the expansionof the European Union worries existing EU members when it comes to cheap labor. pg 294-296
Immigrants from soviet stats, new citizens should have transition period before being able to move freely.
Regional Cooperation Groups
the most basic economic cooperation and integration is Regional Cooperation for Development (RCD)governments agree to participate jointly to develop basic industries beneficial to each economy; each country makes an advance commitment to participate in the financing of a new joint venture and to purchase a specified share of the output of the ventureEX: the project between Colombia and Venezuela to build a hydroelectric generating plant on the Orinoco River
Free Trade Area
requires more cooperation and integration than the RDCIt is an agreement between two or more countries to reduce or eliminate CUSTOMS DUTIES and NONTARIFF TRADE BARRIERS among partner countries while members maintain individual tariff schedules for external countries.basically, FTA provides its members with a mass market without barriers to impede the flow of goods and services
Customs Union
represents the next stage in economic cooperation. It enjoys the free trad area's reduced or eliminated internal tariffs and adds a COMMON EXTERNAL TARIFF on product imported from countries outside the union.It is a logical state of cooperation in the transition from FTA to Common market.Custom Unions exist between France and Monaco, Italy and San Marino, Switzerland and Liechtenstein
Common Market
eliminates all tariffs and other restrictions on internal trade, adopts a set of common external tariffs, AND removes ALL restrictions on the free flow of CAPITAL and LABOR among member nationsThus, a common market is a common marketplace for goods as well as services (including labor) and for capital.It is a UNIFIED ECONOMY and lacks only POLITICAL UNITY to become a political nation
Political Union
most fully integrated form of regional cooperationinvolves complete political and economic integration, either voluntary or enforced***The most notable enforced political union was the Council for Mutual economic Assistance (COMECON)- a centrally controlled group of countries organized by the Soviet Union(when the Soviet Union dissolved COMECON was disbanded)