Chapter 2 Global economy PART 4

Market Integration

Economic cooperation between countries in a region

Market Integration

Goal: improve competitiveness and free trade.

Market Integration

Example: ASEAN, EU

Free Trade Area”

Elimination of tariffs among member countries

Free Trade Area/

Retains separate external tariffs.

Free Trade Area.

Promotes free flow of goods and services.

Free Trade Area

Example: ASEAN Free Trade Area (AFTA)

Issue of Unfair Trade Practices

Price manipulation (dumping)

Issue of Unfair Trade Practices

Child or underpaid labor

Issue of Unfair Trade Practices

Ignoring health and environmental standards

European Union, North American Free Trade Agreement

Examples of Regional Economic Blocs in Western Blocs

Examples of Regional Economic Blocs in Asia Pacific Blocs

ASEAN Economic Community, Asia Pacific Economic Cooperation

WTO, World Bank, IMF, ADB, AIIB

What are the Major International Economic Institutions?

WTO

Oversees global trade rules.

World Bank

Funds development projects.

IMF

Ensures global financial stability

ADB

Promotes growth in Asia

AIIB

Funds infrastructure in Asia.