IB_6_BBIS_BBA_LACM.pptx - 6 HIERARCHY OF INTERNATIONAL INSTITUTIONS IN GLOBAL BUSINESS SYSTEM Global Business System Trade within a country \u2013 GSP EU

IB_6_BBIS_BBA_LACM.pptx - 6 HIERARCHY OF INTERNATIONAL...

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6. HIERARCHY OF INTERNATIONAL INSTITUTIONS IN GLOBAL BUSINESS SYSTEM
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Global Business System
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TRADING ENVIRONMENT Trade within a country – GSP, EU Bilateral Trade Treaty - trade between two countries Regional Trade Treaty - trading bloc and REIs Multilateral Trading – WTO, UNCTAD, ITC
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Unilateral Preferential Trading Arrangement Generalized System of Preferences (GSP): Special import system of industrialized developed countries for the goods originating and exported from developing nations. A tariff concession approved by UNCTAD GSP , is a preferential tariff system which provides for a formal system of exemption from the more general rules of the World Trade Organization (WTO) Objectives of GSP To assist developing countries to increase foreign exchange earnings To foster industrialization of developing countries To accelerate overall economic growth of developing countries
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AGOA AGOA: African Growth and Opportunity Act, or AGOA is a legislation to assist the economies of sub-Saharan Africa and to improve economic relations between the United States, and the region – approved by US Congress in May 2000 Agricultural products is a promising area for AGOA trade African countries in meeting U.S. sanitary and phytosanitary standards The U.S. government is providing technical assistance to AGOA eligible countries Nigeria and Angola are the largest exporters under AGOA Every year an AGOA Forum is held, which brings together government leaders and private sector stakeholders from Africa and the United States The legislation authorized the President of the United States to determine which sub-Saharan African countries would be eligible for AGOA on an annual basis - The eligibility criteria is to improve labor rights and movement toward a market- based economy which really helped a lot
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The Lome Agreement/Cotonou Agreement of EU/ACP The Lomé Convention is a trade and aid agreement between the European Union (EU) and 71 African, Caribbean, and Pacific (ACP) countries , first signed in February 1975 in Lomé , Togo EU: European Union is the largest and strongest economic grouping in Europe, with common currency, bank and trade representative ACP: The group of African, Caribbean, and Pacific countries are signatories of the Lome Convention with the European Commission. This guaranteed Europe itself regular supplies of raw materials, & to maintain privileged position.
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Bilateral Trade and Investment Treaties Provides fair trade relations between two countries Provides assured market and export earnings Sharing of technological progress Assurances of supplies with guaranteed prices Strong links between exporter and importer It can discriminate to other county than that of the two contracting parties A stronger nation might exact unreasonable terms from a weaker one Primary commodity producers have low bargaining power as there is lack of storage and urgent need for export proceeds for such countries.
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