国际商务_International Business_chapter_8.pptVIP

ASEAN plus China * * * * * * * * * * * * * * * * * * * * * * * * International Business: Strategy, Management, and the New Realities * International BusinessStrategy, Management the New Realitiesby Cavusgil, Knight and Riesenberger Chapter 8 Regional Economic Integration International Business: Strategy, Management, and the New Realities * Regional Economic Integration Growing economic interdependence that results when countries within a geographic region form an alliance aimed at reducing barriers to trade and investment. About 40% of world trade now occurs via an economic bloc agreement. Cooperating nations obtain: increased product choices, productivity, living standards; lower prices; and more efficient resource use. Part 1 Introduction International Business: Strategy, Management, and the New Realities * Economic Bloc A geographic area that consists of two or more countries that agree to pursue economic integration by reducing tariffs and other restrictions to cross-border flow of products, services, capital, and, in more advanced stages, labor. Examples: European Union (EU), NAFTA, MERCOSUR, APEC, ASEAN, and many others There are five possible levels of economic integration International Business: Strategy, Management, and the New Realities * Levels of Regional Integration Free trade area: Simplest, most common arrangement. Member countries agree to gradually eliminate formal trade barriers within the bloc, while each member country maintains an independent international trade policy with countries outside the bloc. E.g., NAFTA. Customs union: Similar to a free trade area except that the members harmonize their trade policies toward nonmember countries, by enacting common tariff and nontariff barriers on imports from nonmember countries. E.g., MERCOSUR (mainly Argentina, Brazil, Paraguay, and Uruguay) International Business: Strategy, Management, and the New Realities * Levels of Regional Integration (cont’d) 3. Common market (single ma