Chapter 8
Regional Economic Integration
Chapter Outline
OPENING CASE: The European Energy Market
INTRODUCTION
Levels of Economic Integration
THE CASE FOR REGIONAL INTEGRATION
The Economic Case for Integration The Political Case for Integration Impediments to Integration
THE CASE AGAINST REGIONAL INTEGRATION
REGIONAL ECONOMIC INTEGRATION IN EUROPE
Evolution of the European Union Political Structure of the European Union Management Focus: The European Commission and Media Industry Mergers The Single European Act Country Focus: Creating a Single European Market in Financial Services The Establishment of the Euro Enlargement of the European Union
REGIONAL ECONOMIC INTEGRATION IN THE AMERICAS
The North American Free Trade Agreement The Andean Community MERCOSUR Central American Common Market, CAFTA and CARICOM Free Trade Area of the Americas
REGIONAL ECONOMIC INTEGRATION ELSEWHERE
Association of Southeast Asian Nations Asia Pacific Economic Cooperation Regional Trade Blocs in Africa
FOCUS ON MANAGERIAL IMPLICATIONS
Opportunities Threats
SUMMARY
CRITICAL THINKING AND DISCUSSION QUESTIONS
CLOSING CASE: NAFTA and the U.S. Textile Industry
Learning Objectives
1. Be able to explain the different levels of regional economic integration.
2. Understand the economic and political arguments for regional economic integration.
3. Understand the economic and political arguments against regional economic integration.
4. Be familiar with the history, current scope, and future prospects of the world's most important regional economic agreements.
5. Understand the implications for business that are inherent in regional economic integration agreements.
Chapter Summary
In this chapter, the topic of regional economic integration is explored. The levels of regional economic
Chapter Outline
OPENING CASE: The European Energy Market
INTRODUCTION
Levels of Economic Integration
THE CASE FOR REGIONAL INTEGRATION
The Economic Case for Integration The Political Case for Integration Impediments to Integration
THE CASE AGAINST REGIONAL INTEGRATION
REGIONAL ECONOMIC INTEGRATION IN EUROPE
Evolution of the European Union Political Structure of the European Union Management Focus: The European Commission and Media Industry Mergers The Single European Act Country Focus: Creating a Single European Market in Financial Services The Establishment of the Euro Enlargement of the European Union
REGIONAL ECONOMIC INTEGRATION IN THE AMERICAS
The North American Free Trade Agreement The Andean Community MERCOSUR Central American Common Market, CAFTA and CARICOM Free Trade Area of the Americas
REGIONAL ECONOMIC INTEGRATION ELSEWHERE
Association of Southeast Asian Nations Asia Pacific Economic Cooperation Regional Trade Blocs in Africa
FOCUS ON MANAGERIAL IMPLICATIONS
Opportunities Threats
SUMMARY
CRITICAL THINKING AND DISCUSSION QUESTIONS
CLOSING CASE: NAFTA and the U.S. Textile Industry
Learning Objectives
1. Be able to explain the different levels of regional economic integration.
2. Understand the economic and political arguments for regional economic integration.
3. Understand the economic and political arguments against regional economic integration.
4. Be familiar with the history, current scope, and future prospects of the world's most important regional economic agreements.
5. Understand the implications for business that are inherent in regional economic integration agreements.
Chapter Summary
In this chapter, the topic of regional economic integration is explored. The levels of regional economic