ADMS 3960 Lecture Notes - Lecture 7: Trade Creation, East African Community, Caribbean Community
24 Oct 2016
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Document Summary
Political and economic agreements among countries in which preference is given to member countries. Trading groups (bilateral, regional, or global) are more important influence on the strategies of. Define the size of the regional market and the rules under which mnes must operate. Companies expanding internationally must change their structure and strategies to take advantage of regional trading groups. Bilateral: two countries cooperate closely, usually in the form of tariff reductions. Regional: a group of countries locates in the same geographic proximity decide to cooperate (e. g. the eu) Global: countries worldwide cooperate (e. g. the wto) Bilateral agreements, also known as preferential trade agreements or free trade agreements. Sometimes negotiated by partner nations as a way to circumvent the multilateral trading system and meet their mutual trading objective. Regional trade agreement: multiple countries engaged in the process of economic integration. Geographic proximity is an important reason for economic integration (geography, similar tastes, etc. )
