Global Business and Economic Integration

These flashcards cover essential terms and concepts from the lecture on global and regional integration.

What is regional economic integration?

Efforts to reduce trade and investment barriers within one region.

What is global economic integration?

Efforts to reduce trade and investment barriers around the globe.

What does GATT stand for?

General Agreement on Tariffs and Trade.

What is the role of the World Trade Organization (WTO)?

It is the organization that underpins the multilateral trading system and governs international trade since 1995.

What is one political benefit of global economic integration?

Promotes peace by promoting trade and investment.

What is nondiscrimination in the context of global trade?

A principle that a country cannot discriminate among its trading partners.

What was the major contribution of the GATT?

To reduce the level of tariffs by sponsoring rounds of multilateral negotiations.

What year was the WTO established?

1995.

What is a free trade area (FTA)?

A group of countries that remove trade barriers among themselves.

What is an example of a customs union?

An economic agreement that imposes common external policies on nonparticipating countries, such as the European Union on its member states.

What are the main economic benefits of global economic integration?

Free trade and investment raise incomes and stimulate economic growth.

What was established in 1951 to promote economic cooperation in Europe?

The European Coal and Steel Community (ECSC).

What is the Euro?

The currency currently used in 19 EU countries.

Name one challenge faced by the EU today.

Brexit or the financial crises and recession.

What replaced NAFTA?

The United States–Mexico–Canada Agreement (USMCA).

What does ASEAN stand for?

Association of Southeast Asian Nations.

What is the implication for action regarding regional versus global thinking?

Think regional, downplay global.