Notes 03-14-11, exam 2

Notes 03-14-11, exam 2 - The Economic Environment Click to...

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Click to edit Master subtitle style The Economic Environment
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Regional Economic Integration Levels of economic integration Free Trade Area Good and services are freely traded among all members. Each country maintains its own trade barriers vis-à-vis nonmembers. Customs Union Members establish a common trade policy with respect to nonmembers. Common Market The mobility of factors of production is emphasized. A common external tariff is adopted. Economic Union Integration and harmonization of economic and monetary policies is achieved leading to political union.
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The Free Trade Area Eliminates tariff and quota barriers among member countries. Each country is free to set its own tariff and quota barriers against nonmember countries. Can be formed for certain classes of goods or services only. Rules of orgin requirements restrict transshipment of goods from the country with the lowest tariff to another
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The Customs Union Tariff and quota barriers among member countries are eliminated Member countries establish common tariff and trade barriers against nonmember countries. Tariff revenues are shared among members according to a prescribed formula. Examples: The EU and Turkey, the Andean Community, Mercosur, CARICOM.
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The Common Market No trade barriers among member nations
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This note was uploaded on 08/15/2011 for the course MKTG 4704 taught by Professor Ince during the Spring '10 term at Virginia Tech.

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Notes 03-14-11, exam 2 - The Economic Environment Click to...

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