International economic integration

Сентябрь 11, 2022

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International economic integration

Содержание

2. Economic Integration Globalisation about growing economic interdependence of countries as well as the rapid diffusion of
3. The case FOR government intervention Political arguments: “protecting jobs and industries” “protecting industries vital for national
4. Barriers to Trade Tariff Barriers Official constraints on the import of certain goods. Non Tariff Barriers:
5. Manifestations of Economic Integration Free Trade Areas: Members remove trade barriers between themselves, but maintain independence
6. Instruments of Global Integration GATT: 8 rounds 1947 to 1994. Early stages concerned with removal of
7. World Bank Objectives: To raise standards of living in 3rd World countries. Owned and funded by
8. Key Issues The WTO, The IMF and The World Bank: The key organisations concerned with global
9. Multinational Enterprises (MNE) MNE Vs International Firm: An MNE any firm that with (FDI) Foreign Direct
10. Are MNE’s Trans-national? MNE’s no longer have allegiance to a single country? Increasingly difficult to pinpoint
11. The Free Trade Debate For: Generally trade theories show the benefit of free trade particularly absolute
13. Скачать презентацию

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Economic Integration
Globalisation about growing economic interdependence of countries as well as

the rapid diffusion of technology & information.
Economic Integration about removing barriers to trade, & national government intervention in trade.
There has been a range of moves towards enhancing economic integration since the end of the II World War.
Supported by economic theory!

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The case FOR government intervention
Political arguments:
“protecting jobs and industries”
“protecting industries vital

for national security”
as part of a “get tough” policy to open foreign markets
“strategic” trade policy: protecting infant industries, aiding first-mover advantage, overcoming barriers to entry
Economic integration likely to generate gains for participating nations, however these are not necessarily equally distributed. There will be some losers, both individual & organisational.

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Barriers to Trade
Tariff Barriers
Official constraints on the import of certain goods.
Non

Tariff Barriers:
Indirect measures, that are more difficult to measure than official tariffs.
Subsidies
Import quotas and “voluntary” export restraints
Local content requirements, technical standards.
Administrative trade policies (bureaucratic hurdles)
US barring Mexican trucks from entering US on safety grounds
Access to local Channel and supply chain network

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Manifestations of Economic Integration
Free Trade Areas:
Members remove trade barriers between themselves,

but maintain independence to negotiate with 3rd party state’s re trade. Eg NAFTA
Customs Unions:
Similar to FTA but members must maintain common external commercial arrangements such as common tariff policies. E.g CACM
Common Markets:
Allows free trade & free mobility of production factors; capital, labour & technology. E.g MERCOSUR

FTA

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Instruments of Global Integration
GATT:
8 rounds 1947 to 1994.
Early stages concerned with

removal of tariff barriers, later rounds with non tariff barriers
WTO (146 members on 4 April 2003. 95% of world trade)
Forum for trade agreements
Administering trade agreements
Settling trade disputes
Reviewing national trade policies
Combating trade barriers, & anti competitive behaviour such as dumping.

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World Bank Objectives:
To raise standards of living in 3rd World countries.
Owned

and funded by 160 countries.

IMF Objectives:
Promote international monetary cooperation
Expansion of world trade
Ensure equilibrium between members balance of trade

Moving financial resources from 1st to 3rd world by:
Lending funded by subscriptions as well as investments and repayments

Promoting exchange rate stability
Prevent competitive devaluations
Providing emergency stability funds

IMF & The World Bank Established at Bretton Woods New Hampshire in 1944

Achieved

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Key Issues
The WTO, The IMF and The World Bank:
The key organisations

concerned with global trade.
Main Objectives:
The WTO:
primary focus is to increase world trade by reducing trade barriers and eliminating discrimination.
IMF:
Maintain monetary (currency) stability
World Bank:
Fiscal or financial funding systems.

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Multinational Enterprises (MNE)
MNE Vs International Firm:
An MNE any firm that with

(FDI) Foreign Direct Investment over which it maintains full control as apposed to a firm engaged in international trade but with no FDI.
History of MNE’s:
Appeared in Assyria in 2000BC and flourished in the Roman period.
Today the worlds largest MNE’s account for 80% of global industrial output. Largest MNE’s are based in EU, US or Japan

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Are MNE’s Trans-national?
MNE’s no longer have allegiance to a single country?
Increasingly

difficult to pinpoint country of origin. Shares held and traded globally.
However there is also clear evidence that in many cases the MNE maintain a clear national base and culture that determines their governance.
Competitive Base:
MNE’s have many advantages mostly of scale and experience over local companies.

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The Free Trade Debate
For:
Generally trade theories show the benefit of free

trade particularly absolute and comparative advantage.
Against:
Loss of sovereignty
Environmental, trade will shift to countries that do not protect the environment.
Short term problems for countries in transition.
Many of the perceived problems stem from unfair competitive practices that have become associated with the power of the advanced economies

International economic integration

Содержание

Economic IntegrationGlobalisation about growing economic interdependence of countries as well as

The case FOR government interventionPolitical arguments:“protecting jobs and industries”“protecting industries vital

Barriers to TradeTariff BarriersOfficial constraints on the import of certain goods.Non

Manifestations of Economic IntegrationFree Trade Areas: Members remove trade barriers between themselves,

Instruments of Global IntegrationGATT:8 rounds 1947 to 1994.Early stages concerned with

World Bank Objectives:To raise standards of living in 3rd World countries.Owned

Key IssuesThe WTO, The IMF and The World Bank:The key organisations

Multinational Enterprises (MNE)MNE Vs International Firm:An MNE any firm that with

Are MNE’s Trans-national?MNE’s no longer have allegiance to a single country?Increasingly

The Free Trade DebateFor:Generally trade theories show the benefit of free

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