Int Econ-Ch07-S2012 International Economics 国际经济学课件.pptxVIP

1;2;Economic Integration;Economic Integration;Economic Integration;Economic Integration;Economic Integration;8;Economic Integration;10;11;Other U.S. Free Trade Agreements;13;14;Examples of Custom Unions (CU): Southern African Customs Union East African Community Gulf Cooperation Council MERCOSUR Central American Customs Union EU customs zone EU - Turkey Customs Union (since 1996) EU - Andorra Customs Union EU - San Marino Customs Union Economic and Monetary Community of Central Africa (CEMAC) West African Economic and Monetary Union ;16;17; Other Examples of Common Markets Proposed Economic Community of West African States (ECOWAS) Central African Common Market of the Economic Community of Central African States (ECCAS) Gulf cooperation council (GCC), due in 2007 Southern African development community (SADC), due in 2012 ASEAN Economic Community (AEC), due in 2020 African Economic community (AEC), due in 2023 ;19;Economic Union;Other Economic Union-- Proposed;22;23;Economic Analysis of Economic Integration;Economic Analysis of Economic Integration; ;Free Trade;Commercial policy: for Various Reasons; ;30;Commercial Policy: for various Reasons;FTA between A and B;33;FTA Effects on B and C;35;36;37;;;Economic Analysis of Economic Integration; ;8.1. Economic Benefits: Consumers in A benefit (Price falls from $3.00 to $2.00) Consumers’ surplus would rise Area (A + B+ C+ D) ;8.2. Economic Losses: Producers’ Surplus Falls Area ( A) Government Revenue Falls Area (C + E);Effects of Trade Creation - Effects of Trade Diversion (A+B+C+D) – (A+ C+E) (A + B + C + D) – (A + C +E) (B + D) – (E); ;The Economic Effects of PTAs: Conclusion; Why would country A (the high cost producer) negotiates a regional trade agreement (form FTA) with B (which is not necessarily the least cost producer) while it can definitely improve its welfare better by keeping free trade or forming a FTA with C ? Reasons for the formation of FTA go beyond the static gains and