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Cross-National Cooperation and Agreements

In: Business and Management

Submitted By aryan129
Words 5888
Pages 24
Chapter EIGHT
CROSS-NATIONAL COOPERATION
AND AGREEMENTS

OBJECTIVES

• To profile the World Trade Organization
• To discuss the pros and cons of global, bilateral, and regional integration
• To describe the static and dynamic effects and the trade creation and diversion effects of bilateral and regional economic integration
• To define different forms of regional economic integration
• To present different regional trading groups, such as the European Union (EU), the North American Free Trade Agreement (NAFTA), and Asia-Pacific Economic Cooperation (APEC)
• To describe the rationale for and success of commodity agreements

Chapter Overview

Regional economic integration represents a relatively new phenomenon in the history of world trade and investment. Chapter Eight first examines the roles of the General Agreement on Tariffs and Trade and the World Trade Organization in determining the ground rules of the world trade environment. It then introduces the basic types of economic integration and explores the potential effects of the process. Next it examines in detail both the European Union (its structure and its operations) and the North American Free Trade Agreement and briefly describes a variety of other regional economic groups. The chapter concludes with a discussion of various commodity agreements and producer alliances, including the Organization for Petroleum Exporting Countries.

Chapter Outline

OPENING CASE: TOYOTA IN EUROPE
Known for its low-cost, efficient production operations, and with 2004 global sales of approximately 6.78 million units and a net income of more than US $11 billion, Toyota Motor Corp. was not only the world’s third largest manufacturer of automobiles, it was the most profitable of all. Toyota’s goal is to capture a 15 percent share of the global market and become the world’s top producer of…...

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