Test 2 - Test 2 Sofia Medeiros Dr. Mbah BUS 370 9 March,...

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Test 2 Sofia Medeiros Dr. Mbah BUS 370 9 March, 2009
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1-What are the benefits (if any) of “regional integration agreements” between Nations? Support your argument with an example of a one or two integrated bloc(s)? The Regional Integration Agreements is one of the major international relations developments of recent years. Most industrial and developing countries in the world are members of a regional integration agreement, and many belong to more than one: more than one-third of world trade takes place within such agreements. Along with all the effects of these agreements, there are many benefits among them. Talking about NAFTA as an example, the North America Free Trade Agreement, which is compound by U.S., Mexico and Canada, the country members gained many benefits since its implementation in 1994. Taking a particular look at the increased of trade and investment flows, we can see that Maquiladoras (Mexican factories which take in imported raw materials and produce goods for export), has increased its income 15.5% since the implementation of NAFTA; from 1993 to 2006, trade among the NAFTA nations climbed 198 percent, from $297 billion to $883 billion; as of 2006, each day the NAFTA countries conducted nearly $2.4 billion in trilateral trade; Canada and Mexico are the U.S.’ first and second largest export markets; last year, U.S. exports to NAFTA partners alone accounted for 35 percent of total U.S. exports; For agriculture, Canada and Mexico alone account for 50 percent of the increase in U.S. agricultural exports to the world since 1993; NAFTA has been good for Mexican agriculture. Trade growth has been remarkably balanced, with U.S. agricultural exports to Mexico increasing by $7.3 billion and U.S. agricultural imports from Mexico increasing by $6.7 billion during the last 13 years. (www.ustr.gov) Using now the APEC as another example, the Asia-Pacific Economic Cooperation, which has implemented in 1989 and has current 21 members such as Australia, Brunei Darussalam, Canada, Chile, People's Republic of China, Hong Kong, China, Indonesia, Japan, Republic of Korea, Malaysia, Mexico, New Zealand, Papua New Guinea, Peru, Philippines, Russia, Singapore, Chinese Taipei, Thailand, United States and Viet Nam. As the recent report APEC Economies: Breaking Down the Barriers (APEC 2001) has shown, reforms in diverse
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areas have brought many common benefits by, for example: reducing prices and increasing quality and choices for consumers; improving productive efficiency by reducing input and transaction costs for business; promoting innovation and the adoption of new products, technologies and management methods; increasing the adaptability of the domestic economy, in part to take best advantage of the gains from globalization and economic integration; establishing institutions and methods to enable economies to more cost effectively achieve regulatory objectives, and safeguarding budgetary revenues and making more efficient and effective use of public resources. The reforms are not just facilitating international trade and investment, they
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Test 2 - Test 2 Sofia Medeiros Dr. Mbah BUS 370 9 March,...

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