國(guó)際貿(mào)易chap9區(qū)域經(jīng)濟(jì)一體化

1、Chapter 9Regional Economic Integration8-2What Is Regional Economic Integration?Regional economic integration - agreements between countries in a geographic region to reduce tariff and non-tariff barriers to the free flow of goods, services, and factors of production between each otherIn most cases,

2、a REI involves neighboring economies. In many other cases, it can be some economies which are very far away from each other geographically, but linked closely due to some other factors, like political relation, historic relation, etc. 8-3What Are The Levels Of Regional Economic Integration?Levels of

3、 Economic Integration6-4Levels Of Economic IntegrationThere are five levels of economic integration:1. a free trade area eliminates all barriers to the trade of goods and services among member countries, but members determine their own trade policies for nonmembersthe European Free Trade Association

4、 (between Norway, Iceland, Liechtenstein, and Switzerland), and the North American Free Trade Agreement (between the U.S., Canada, and Mexico) are both free trade areas6-5Levels Of Economic Integration2. a customs union eliminates trade barriers between member countries and adopts a common external

5、trade policyThe Andean Pact (between Bolivia, Columbia, Ecuador and Peru) is an example of a customs unionFree trade area + common external trade policy6-6Levels Of Economic Integration3. a common market has no barriers to trade between member countries, a common external trade policy, and the free

6、movement of the factors of production MERCOSUR (between Brazil, Argentina, Paraguay, and Uruguay) is aiming for common market statusCustoms union + free movement of the production factors8-7What Are The Levels Of Regional Economic Integration?An economic union has the free flow of products and facto

7、rs of production between members, a common external trade policy, a common currency, a harmonized tax rate, and a common monetary and fiscal policyEuropean Union (EU)Common market + harmonized economic policy8-8What Are The Levels Of Regional Economic Integration?A political union involves a central

8、 political apparatus that coordinates the economic, social, and foreign policy of member states The EU is headed toward at least partial political union, and the United States is an example of even closer political unionEconomic union + coordinated political policy8-9What Are The Levels Of Regional

9、Economic Integration?Levels of Economic Integration8-10Why Should Countries Integrate Their Economies?All countries gain from free trade and investment - regional economic integration is an attempt to exploit the gains from free trade and investmentLinking countries together, making them more depend

10、ent on each othercreates incentives for political cooperation and reduces the likelihood of violent conflictgives countries greater political clout when dealing with other nations8-11What Limits Efforts At Integration?Economic integration can be difficult because while a nation as a whole may benefi

11、t from a regional free trade agreement, certain groups may loseit implies a loss of national sovereigntyRegional economic integration is only beneficial if the amount of trade it creates exceeds the amount it divertstrade creation occurs when low cost producers within the free trade area replace hig

12、h cost domestic producerstrade diversion occurs when higher cost suppliers within the free trade area replace lower cost external suppliersTrade CreationA Country Production cost $250/MTB Country Production cost $150/MTTo enter into A country: $150+tariff 200%C country Production cost $100/MTTo ente

13、r into A country: $100+tariff 200%Whats the trade pattern before REI?What will happen if A and B sign a FTA?8-12trade creation occurs when low cost producers within the free trade area replace high cost domestic producersProduction in B country replace the production in A countryDoes this change bri

14、ng any benefit or harm to any country / specific interest group / whole world economy?8-13Trade DiversionA Country Production cost $250/MTB Country Production cost $150/MTTo enter into A country: $150+tariff 100%C country Production cost $100/MTTo enter into A country: $100+tariff 100%Whats the trad

15、e pattern before REI?What will happen if A and B sign a FTA?8-14trade diversion occurs when higher cost suppliers within the free trade area replace lower cost external suppliersProduction in B country replace the production in C countryDoes this change bring any benefit or harm to any country / spe

16、cific interest group / whole world economy?8-15Regional economic integration is only beneficial if the amount of trade it creates exceeds the amount it diverts8-166-17Discussion Under the WTO, REI is a very important exception from MFN principle. WTO requires its members to assure that the non-membe

17、rs of a new REI enjoy the treatment not worse than pre-REI. Question: Do regional trade agreements promote free trade?In theory, yes, but the world may be moving toward a situation in which a number of regional trade blocks compete against each other Trade DiversionA Country Production cost $250/MTB

18、 Country Production cost $150/MTTo enter into A country: $150+tariff 100%C country Production cost $100/MTTo enter into A country: $100+tariff 100%Whats the trade pattern before REI?What will happen if A and B sign a FTA?8-186-19Conclusion Regional trade agreements are designed to promote free trade

19、, but instead the world may be moving toward a situation in which a number of regional trade blocks compete against each other Its widely accepted that REI can benefit the firms and countries within the block. However, it may discriminate against outsiders. 8-20What Is The Status Of Regional Economi

20、c Integration In Europe?Europe has two trade blocs The European Union (EU) with 27 membersThe European Free Trade Area (EFTA) with 4 membersThe EU is seen as the worlds next economic and political superpower8-21What Is The Status Of Regional Economic Integration In Europe?Member States of The Europe

21、an Union in 20098-22What Is The European Union?The devastation of two world wars on Western Europe prompted the formation of the EUMembers wanted lasting peace and to hold their own on the worlds political and economic stage Forerunner was the European Coal and Steel Community (1951)The European Eco

22、nomic Community (1957) was formed at the Treaty of Rome with the goal of ing a common market The Single European Act (1987)committed the EC countries to work toward establishment of a single market by December 31, 1992was born out of frustration among EC members that the community was not living up

23、to its promise provided the impetus for the restructuring of substantial sections of European industry allowing for faster economic growth than would otherwise have been the case8-23What Is The Political Structure Of The European Union?The European Council - resolves major policy issues and sets pol

24、icy directionsThe European Commission - responsible for implementing aspects of EU law and monitoring member states to ensure they are complying with EU lawsThe Council of the European Union - the ultimate controlling authority within the EUThe European Parliament - debates legislation proposed by t

25、he commission and forwarded to it by the councilThe Court of Justice - the supreme appeals court for EU law8-24What Is The Euro?The Maastricht Treaty committed the EU to adopt a single currencycreated the second largest currency zone in the world after that of the U.S. dollar used by 16 of the 27 me

26、mber statesBritain, Denmark and Sweden opted outsince its establishment January 1, 1999, the euro has had a volatile trading history with the U.S. dollar8-25Is The Euro A Good Thing?Benefits of the eurosavings from having to handle one currency, rather than manyit is easier to compare prices across

27、Europe, so firms are forced to be more competitivegives a strong boost to the development of highly liquid pan-European capital marketincreases the range of investment options open both to individuals and institutionsCosts of the euroloss of control over national monetary policyEU is not an optimal

28、currency area8-26Should The EU Continue To Expand?Many countries have applied for EU membershipTen countries joined in 2004 expanding the EU to 25 statesIn 2007, Bulgaria and Romania joined bringing membership to 27 countries Turkey has been denied full membership because of concerns over human righ

29、ts8-27What Is The Status Of Economic Integration In The Americas?There is a move toward greater regional economic integration in the AmericasThe biggest effort is the North American Free Trade Area (NAFTA)Other efforts include the Andean Community and MERCOSURA hemisphere-wide Free Trade of the Amer

30、icas is under discussion 8-28What Is The Status Of Economic Integration In The Americas?Economic Integration in the Americas8-29What Is The North American Free Trade Agreement? The North American Free Trade Area (NAFTA, 1994) includes the United States, Canada, and Mexicoabolished tariffs on 99% of

31、the goods traded between membersremoved most barriers on the cross-border flow of servicesprotects intellectual property rightsremoves most restrictions on FDI between the three member countriesallows each country to apply its own environmental standardsestablishes two commissions to impose fines an

32、d remove trade privileges when environmental standards or legislation involving health and safety, minimum wages, or child labor are ignored6-30Regional Economic IntegrationNAFTA and the U.S. Textile industry (p298)Martins Textiles (p299)Debate the ratification of the North American Free Trade Agree

33、ment. Do you support the agreement? Why or why not? In your opinion, should NAFTA be expanded? 8-31Is The North American Free Trade Area Beneficial? Supporters of NAFTA claimed thatMexico would benefit from increased jobs as low cost production moves south and will see more rapid economic growth as

34、a resultthe U.S. and Canada would benefit from access to a large and increasingly prosperous marketthe lower prices for consumers from goods produced in Mexicolow cost labor and the ability to be more competitive on world markets8-32Is The North American Free Trade Area Beneficial?Critics of NAFTA c

35、laimed that jobs would be lost and wage levels would decline in the U.S. and CanadaMexican workers would emigrate northpollution would increase due to Mexicos more lax standardsMexico would lose its sovereignty8-33Who Was Right?Research indicates that NAFTAs early impact was subtle, and both advocat

36、es and detractors may have been guilty of exaggerationNAFTA is credited with helping create increased political stability in MexicoOther Latin American countries would like to join NAFTA 8-34What Is The Andean Community?The Andean Pact formed in 1969 using the EU modelhad more or less failed by the

37、mid-1980swas re-launched in 1990, and now operates as a customs unionsigned an agreement in 2003 with MERCOSUR to restart negotiations towards the creation of a free trade area8-35What Is MERCOSUR?MERCOSURoriginated in 1988 as a free trade pact between Brazil and Argentinawas expanded in 1990 to inc

38、lude Paraguay and Uruguaymay be diverting trade rather than creating trade, and local firms are investing in industries that are not competitive on a worldwide basisinitially made progress on reducing trade barriers between member states, but more recently efforts have stalled 8-36What Is The Centra

39、l American Trade Agreement And ?There are two other trade pacts in the Americasthe Central American Trade Agreement (CAFTA, 2005) - to lower trade barriers between the U.S. and members (1973) - to establish a customs unionNeither pact has achieved its goals yetIn 2006, six members formed the Caribbe

40、an Single Market and Economy (CSME) - to lower trade barriers and harmonize macro-economic and monetary policy between members 8-37What Is Free Trade Of The Americas? Talks began in April 1998 to establish a Free Trade of The Americas (FTAA) by 2005The FTAA was not established and now support from t

41、he U.S. and Brazil is mixedthe U.S. wants stricter enforcement of intellectual property rightsBrazil and Argentina want the U.S. to eliminate agricultural subsidies and tariffs If the FTAA is established, it will have major implications for cross-border trade and investment flows within the hemisphe

42、rewould create a free trade area of 850 million people who accounted for nearly $18 trillion in GDP in 2008 8-38What Is The Status Of Economic Integration In Asia?Various efforts at integration have been attempted in Asia, but most exist in name onlyAssociation of Southeast Asian Nations (ASEAN)Asia

43、-Pacific Economic Cooperation (APEC)8-39What Is The Association Of Southeast Asian Nations?The Association of Southeast Asian Nations (ASEAN, 1967)currently includes Brunei, Indonesia, Malaysia, the Philippines, Singapore, Thailand, Vietnam, Myanmar, Laos, and Cambodiawants to foster freer trade bet

44、ween member countries and to achieve some cooperation in their industrial policiesAn ASEAN Free Trade Area (AFTA) between the six original members of ASEAN came into effect in 2003ASEAN and AFTA are moving towards establishing a free trade zone8-40What Is The Association Of Southeast Asian Nations?A

45、SEAN Countries8-41What Is The Asia-Pacific Economic Cooperation?The Asia-Pacific Economic Cooperation (APEC)has 21 members including the United States, Japan, and Chinawants to increase multilateral cooperationmember states account for 55% of worlds GNP, and 49% of world trade 8-42What Is The Asia-P

46、acific Economic Cooperation?APEC MembersCompared with Europe and America, integration in Asia is still at initial stage.Why?JapanU.S.10+1 8-438-44What Is The Status Of Economic Integration In Africa?Many countries are members of more than one of the nine blocs in the region But, since many countries

47、 support the use of trade barriers to protect their economies from foreign competition, meaningful progress is slowThe East African Community (EAC) was re-launched in 2001, however so far, the effort appears futile8-45What Does Economic Integration Mean For Managers?Regional economic integrationopens new mar