opening of government procurement markets to companies in the other 2 nations 3) increase in opportunity to make investments in each others country’s 4) increase in ease of travel between countries 5) removal on restrictions on agricultural products, auto parts & energy goods Regional & bilateral agreements: U.S Singapore FTA … U.S + Central America agreement Do - minican Republic FTA also known as CAFTA-DR… export zone created will be the U.S 2nd largest free trade zone in Latin America after Mexico. European Union: political & economic community consisting of 28 state members • most trade barriers removed • uniform currency • reduces costs of large MNCS on operation scale & scope to reduce costs & increase efficiencies PG 11 ASEAN: look up not? • ASEAN Association South East Asian Nations: Indonesia, Malaysia, Philippines, Singapore, Brunei, Thailand, Cambodia Myanmar, Vietnam. Is advancing trade and economic integration and now poses challenges to China as a region of relatively low cost production and export. PG 12 Shifting bal 1st para -> Pg 13 ends in discussion of BRIcs + South Africa THE SHIFTING BALANCE OF ECONOMIC POWER IN THE GLOBAL ECONOMY - Economic integration + rapid growth of emerging markets = shift in economic landscape - Developing & emerging countries of world predicted occupy increasingly dominant roles in global economic system - BRIC countries share of world growth rise 40% in 2025, huge pickup demand will not be re - stricted to basic goods but will impact higher-priced branded goods as well - BRIC countries may constitute top 4 of top 5 countries of most dominant countries in 2050 - BRIC 09-10 agreed to admit South Africa into the group = BRICS - Worlds largest economics 2050 (using market exchange rates): 1. China, 2. United States 3. In - dia 4. Brazil 5. Japan - Purchasing power of parity: method which adjusts GDP to account for different prices in coun - tries
- Both Goldman Sachs + Price Waterhouse Coopers predict global growth heavily supported by Asia • N-11 = Net 11 [new group of emerging markets] PG 13 • MIST = Mexico, Indonesia, South Korea and Turkey are a subset of N-11, particularly attractive • MIST most promising and advanced of the N-11, young growing populations & other positive conditions for economic growth • Other fast developed groupings CEVITS (Columbia, Indonesia, Vietnam, Egypt, Turkey, South Africa) EAGLES (emerging & growth-leading economies) + BRIC + MIST = Egypt & Taiwan • Recent increase of price of commodities such as oil, gas, agricultural products, mineral & mining products have helped boost incase & wealth in the African government.
- One '14
- International Trade, Economic system, North American Free Trade Agreement, Planned economy