International Trade 1
International Trade
1. Regional Economic Integration
1. Economic Integration among Different group of countries:
The economic integration can be described as the uniting of policies, which are economic in nature between multiple states through the complete or partial purging of restrictions in tariffs and without tariff associated with trade, which existed prior to their unification. This leads to lowering of prices in the domestic market hence the distributors and customers receives the product at a much lower price.
There are many such economic integrations that are spread across the globe and which implement these trade policies to become a stable economy.
A few such integrations are:
European Union: This is a union of 28 countries, which consists of mainly countries from the European region of the globe. This integration came into establishment in 1951 and 1958. They have standardized the law system in these countries and have policies, which are aimed to make sure that there is free transportation of goods and services between these countries especially agricultural products.
Gulf cooperation council (GCC): This union among the Arab countries in the middle east. This formed for an economic and political influence of policies. They have objectives of developing the same policies that influence fields like finance trade, religion tourism and financial agendas. They have planned in establishing common currencies and strengthening ties between the member countries.
North American free Trade agreement (NAFTA): This is an agreement between the countries such as United states, Canada and Mexico. This union came into existence on January 1 1994. They have the agenda of removing trade barriers and improving investment opportunities between these countries. They have looked into the possibilities of eliminating environmental hazards and modernizing agriculture in a joint effort.
Association of Southeast Asian Nations (ASAN): This a geopolitical association
1. Regional Economic Integration
1. Economic Integration among Different group of countries:
The economic integration can be described as the uniting of policies, which are economic in nature between multiple states through the complete or partial purging of restrictions in tariffs and without tariff associated with trade, which existed prior to their unification. This leads to lowering of prices in the domestic market hence the distributors and customers receives the product at a much lower price.
There are many such economic integrations that are spread across the globe and which implement these trade policies to become a stable economy.
A few such integrations are:
European Union: This is a union of 28 countries, which consists of mainly countries from the European region of the globe. This integration came into establishment in 1951 and 1958. They have standardized the law system in these countries and have policies, which are aimed to make sure that there is free transportation of goods and services between these countries especially agricultural products.
Gulf cooperation council (GCC): This union among the Arab countries in the middle east. This formed for an economic and political influence of policies. They have objectives of developing the same policies that influence fields like finance trade, religion tourism and financial agendas. They have planned in establishing common currencies and strengthening ties between the member countries.
North American free Trade agreement (NAFTA): This is an agreement between the countries such as United states, Canada and Mexico. This union came into existence on January 1 1994. They have the agenda of removing trade barriers and improving investment opportunities between these countries. They have looked into the possibilities of eliminating environmental hazards and modernizing agriculture in a joint effort.
Association of Southeast Asian Nations (ASAN): This a geopolitical association
References: 1. Anderson, James E., and Eric van Wincoop, 2004. “Trade Costs,” Journal of Economic Literature, 62 (3), 691-751 (September). 2. Baier, Scott L., and Jeffrey H. Bergstrand, 2004. “Economic Determinants of Free Trade Agreements,” Journal of International Economics 64 (1), 29-63 (October). 3. Baier, Scott L., and Jeffrey H. Bergstrand, 2006. “Bonus Vetus OLS: A Simple Approach to Addressing the ‘Border Puzzle’ and Other Gravity-Equation Issues.” Manuscript (March). 4. Baier, Scott L., and Jeffrey H. Bergstrand, 2007. “Do Free Trade Agreements Actually Increase Members’ International Trade?” Journal of International Economics 71 (1), 72-95 (March). 5. Baier, Scott L., Jeffrey H. Bergstrand, Peter Egger, and Patrick McLaughlin, 2008. “Do Economic Integration Agreements Actually Work? Issues in Understanding the Causes and Consequences of the Growth of Regionalism,” The World Economy 31 (4), 461-497 (April). 6. Baldwin, Richard, and Daria Taglioni, 2007. “Trade Effects of the Euro: A Comparison of Estimators,” Journal of Economic Integration 22 (4), 780-818 (December). 7. DeRosa, Dean and John Gilbert, 2005. "Predicting Trade Expansion under FTAs and Multilateral Agreements," Peterson Institute Working Paper Series WP05-13.