SESION_1

Internationalization process : 

Internationalization process

Preferential Trade Club : 

Preferential Trade Club Two or more countries create a Preferential Trade Club when they reduce the import taxes for the trade between them, and remain the import taxes from all other countries. Ex. Commonwealth countries

Slide 3: 

Original situation 10% 15% Country C 8% 12%

Slide 4: 

Preferential Trade Club 5 % 7.5% Country C 8% 12%

Free Trade Area : 

Free Trade Area Two countries create a Free Trade Area when they elliminate the import taxes for their mutual trade, and remain the import taxes with other countries NAFTA, EFTA, AAFTA, etc. Problem of deviation of trade (Solution: with the certificates of origin)

Slide 6: 

Free Trade Area 0 % 0 % Country C 8% 12% Trade deviation problem

Customs Union : 

Customs Union Two or more countries create a Customs Union when they create a Unique customs area, have zero taxes for mutual trade, and unify the import taxes from third countries. No problem of trade deviation

Slide 8: 

Customs Union Country A Country B 0 % 0 % Country C 6 % 6 %

Common Market : 

Common Market Two or more countries create a common market when they allow free movement of: Merchandises Capitals and Persons

Economic Union : 

Economic Union Two or more countries create an Economic Union when they are a Common Market and develop toguether: Same fiscal policies Same economic policies Same social policies USA, Unión de Estados Mexicanos, ... EU not yet.

Slide 12: 

Global organizations United Nations, its specialized agencies, and associated organizations International Hydrographic Organization International Seabed Authority Organisation for the Prohibition of Chemical Weapons World Trade Organization Europe: European Union (EU) Council of Europe (COE) Economic Commission for Europe (ECE) European Free Trade Association (EFTA) European Space Agency (ESA) European Patent Organisation (EPO) Asia: Asia Cooperation Dialogue (ACD) Asian Development Bank (ADB) East Asian Summit (EAS) Association of Southeast Asian Nations (ASEAN) South Asian Association for Regional Cooperation (SAARC) Economic Cooperation Organization (ECO) Gulf Cooperation Council Colombo Plan

Slide 13: 

Eurasia: Commonwealth of Independent States (CIS) Shanghai Cooperation Organization (SCO) Eurasian Economic Community Central Asian Cooperation Organization TRACECA GUAM Organization of the Black Sea Economic Cooperation (BSEC) Africa: African Union Conseil de l'Entente Economic Community of West African States (ECOWAS) West African Economic and Monetary Union (UEMOA) Southern African Development Community (SADC) Intergovernmental Authority on Development (IGAD) Arab Maghreb Union Western Hemisphere: Organization of American States (OAS) Union of South American Nations Mercosur Andean Community Caribbean Community (CARICOM) Association of Caribbean States (ACS) Organisation of Eastern Caribbean States (OECS) Central American Parliament Rio Group Cooperation System of the American Air Forces(SICOFAA)

Slide 14: 

Trans-atlantic: North Atlantic Treaty Organisation (NATO) Organization for Security and Co-operation in Europe (OSCE) Arctic Ocean: Arctic Council Indian Ocean: Indian Ocean Rim Association for Regional Cooperation (IOR-ARC) Indian Ocean Commission (IOC) Pacific: ANZUS Asia-Pacific Economic Cooperation (APEC) Pacific Islands Forum Pacific Regional Environment Programme (SPREP) Secretariat of the Pacific Community