MKT 4468 CH 3 & 4

General Agreement on Tariffs and Trade (GATT)

The organization established at the end of world war 2 to promote free trade.

The World Trade Organization

The successor to the GATT, provides a forum for trade related negotiations.

Preferential Trade Agreement

A mechanism that confers special treatment on select trading partners.

Free Trade Area

Formed when two or more countries agree to eliminate tariffs and other barriers that restrict trade.

Free Trade Agreement

Creates a Free Trade Area and the ultimate goal is to have zero duties on goods that cross between borders between the partners.

Rules of Origin

A system of certification that verifies the country of origin of a shipment of goods.

Customs Union

A preferential trade bloc whose members agree to seek a greater degree of economic integration than is provided by free trade agreement.

Common External Tariff (CET)

A tariff agreed upon by members of a preferential trade bloc.

Common Market

Builds on the foundation of economic integration by free trade area and customs union. Allows for free movement of factors of production, including labor and capital.

Economic Union

A highly evolved form of cross border integration involving reduced tariffs and quotas, a CET, reduced restrictions on the movement of labor and capital, and the creation of unified economic policies and institutions such as central bank.

United States-Mexico-Canada Agreement

A free trade area encompassing Canada, the U.S. , and Mexico.

Central American Integration System

A customs union composed of El Salvador, Honduras, Guatemala, Nicaragua, Costa Rica, and Panama.

Andean Community

A customs union composed of Bolivia, Colombia, Ecuador, and Peru.

Common Market of the South

A customs union composed of Argentina, Brazil, Paraguay, and Uruguay.

Association of Southeast Asian Nations

A trade bloc composed of Brunei, Cambodia, Indonesia, Malaysia, Laos, Myanmar, the Philippines, Singapore, Thailand, and Vietnam.

Maastricht Treaty

The 1991 treaty that set the stage for the transition from the European monetary system to an economic and monetary union.

Eurozone

Nineteen countries that use the euro: Austria, Belgium, Cyprus, Estonia, Finland, Ireland, The Netherlands, France, Germany, Greece, Italy, Latvia, Lithuania, Luxembourg, Malta, Portugal, Slovakia, Slovenia, and Spain.

Harmonization

The coming together of varying standards and regulations that affect the marketing mix.

Transparency

Openness in business dealings, financial disclosures, pricing, or other situations where the goal is to remove layers of secrecy or other obstacles to clear the way for understanding and decision making.

Gulf Cooperation Council

An association of oil producing states that includes Bahrain, Kuwait, Qatar, Saudi Arabia, and the United Arab Emirates.

Economic Community of West African States

An association of 16 nations that includes Benin, Burkina, Faso, Cape Verde, Gambia, Ghana, Guinea, Guinea-Bissau, Ivory Coast, Liberia, Mali, Mauritania, Niger, Nigeria, Senegal, Sierra Leone, and Togo.

The Southern African Development Community

The members of SADC are Angola, Botswana, DRC (formerly Zaire), Eswatini (formerly Swaziland), Lesotho, Malawi, Mauritius, Mozambique, Namibia, Seychelles, South Africa, Tanzania, Zambia, and Zimbabwe.