GE 5 MARKET INTEGRATION

• MARKET INTEGRATION - separate market or economic entities are interconnected and functioning as a unified or single market.
• MARKET INTEGRATION - integration can occur to various levels regional, national, and international. Also involves removal or reduction of barriers.
• FREE TRADE - The policy that allowing the goods and services to free flow between countries without significant barriers.
• FREE TRADE - It's underlying principle is the belief that it's benefits all participating nations by promoting economic efficiency.
• NORTH AMERICAN FREE TRADE AGREEMENT - NAFTA
• NAFTA - signed by Canada America and Mexico
• NAFTA aimed to eliminate the tariffs and barriers on the trade and investment on the participating country
• EUROPEAN UNION SINGLE MARKET - the single market allows free trade of goods, services, capital, and people among member state, promoting integration and cooperation.
• ASSOCIATION OF SOUTHEAST ASIAN NATIONS FREE TRADE AREA - AFTA
• AFTA - members are Brunei, Indonesia, Malaysia, Philippines, Singapore...
• Trans-Pacific Partnership - TPP
• TPP - trade agreement between 12 pacific rim countries
• TPP - it aims to liberize trade and investment among the Asia Pacific Region
• EXAMPLE OF FREE TRADE AGREEMENT:

  • NORTH AMERICAN FREE TRADE AGREEMENT
  • EUROPEAN UNION SINGLE MARKET
  • ASSOCIATION OF SOUTHEAST ASIAN NATION FREE TRADE AREA
  • TRANS-PACIFIC PARTNERSHIP
• TPP - members are Australia, Brunei, Canada Chile Japan...
• TRADE EMBARGO - refers to the government imposed restrictions or prohibitions on the trade of a particular country or countries, usually for political, economic, and security purposes.
• TRADE EMBARGO - it is a form of trade barrier that restricts or bans the importation, exportation, or exchange of goods services, and sometimes financial transaction with the target countries.
• TRADE EMBARGO - can have significant economic, political, and humanitarian implications for both of the imposing countries.
• TRADE EMBARGO - can disrupt international supply chains, harm business and consumers, and exacerbate tension between countries.
• thereforre, policy makers must carefully consider the potential consequences of trade embargoes and weigh them against their intended objective - TRUE
• UNITED STATES EMBARGO ON CUBA - since 1960 restricting trade and financial transaction with the Cuban government and Certain Cuban individuals and entities
• UNITED STATES EMBARGO ON CUBA - the embargo was imposed in response to Cuba's communists against the government and its alignment with the Soviet Union during the Cold War
• The UN GENERAL ASSEMBLY voted by a large margin against the United States Economic and trade embargo against Cuba with a total of 187 voting for the resolution put forward each year against the embargo
• Only US and ISRAEL votes againts the resolution, and UKRAIN abstaining
• UNITED NATIONS SANCTIONS ON NORTH KOREA - the united nations security council has imposed multiple rounds of sanction on north Korea in response to its nuclear weapon program and ballistic missiles test.
• UNITED NATIONS SANCTION ON NORTH KOREA - these sanctions include restrictions on trade on weapons, luxury goods, and certain commodities
• EUROPEAN UNION SANCTIONS ON RUSSIA - has imposed sanction on russia in response to its annexation of crimea, involvement in the conflict in the eastern ukrain and other actions deemed to undermine the regional stability
• EUROPEAN UNION SANCTIONS ON RUSSIA - these sanctions include restrictions on trade, investment, and access to EU financial markets
• EXAMPLE OF TRADE EMBARGO :

  • UNITED STATES EMBARGO ON CUBA
  • UNITED NATIONS SANCTIONS ON NORTH KOREA
  • EUROPEAN UNION SANCTIONS ON RUSSIA
• INTERNATIONAL FINANCIAL INSTITUTIONS - this are the international non-profit agencies that the main source is from developing banks or banks globally
• INTERNATIONAL FINANCIAL INSTITUTIONS - It finance productive developing project and promote economic development
• 2 KINDS OF INTERNATIONAL FINANCIAL INSTITUTIONS

  1. WORLD BANK
  2. INTERNATIONAL MONETARY FUND
• WORLD BANK - an international financial institution that provide loans and grants to government of low and middle income countries for the purpose of developing project
• WORLD BANK - consist of 189 member countries , including both developed and developing countries
• In WORLD BANK each member country holds share in the institution and has voting power proportional to its financial contributions
• WORLD BANK - established in 1944 and is headquartered in Washington d.c united, states
• The primary goal of the WORLD BANK is to reduce poverty and promote sustainable development by providing financial and technical assistance to countries in need
• TWO MAIN INSTITUTION OF WORLD BANK

  1. INTERNATIONAL BANK FOR RECONSTRICTION AND DEVELOPMENT
  2. INTERNATIONAL DEVELOPMENT ASSOCIATION
• INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT - lend money to a government for a purpose of developing that country's economic infrastructure such s roads and power generating facilities
• INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT - Provides loan to middle - income and credit worthy low income countries