Regional Economic Integration and Global Trade

These flashcards cover key terms and concepts related to regional economic integration, international trade agreements, and their implications for businesses.

ASEAN

The Association of Southeast Asian Nations, established in 1967 to promote economic growth, peace, and collaboration among member countries.

MMIT

Multilateral trade agreements that facilitate trade among multiple countries.

Inclusivity and Sustainability

Focus areas in international business that emphasize equitable growth and environmentally sustainable practices.

Free Trade Area

A region where a group of countries eliminates tariffs and other trade barriers among themselves.

Customs Union

A group of countries that have agreed to charge the same import duties and reduce internal trade barriers.

Common Market

A customs union that allows for the free movement of labor and capital between member states.

Economic Union

A type of trade bloc that adopts a common economic policy and integrates the economies of member countries.

Political Union

A union of countries that share a common political structure and economic governance.

Trade Creation

Occurs when a trade agreement leads to an increase in trade between member countries by replacing higher-cost domestic production with lower-cost imports.

Trade Diversion

Occurs when a trade agreement causes imports to shift from more efficient non-member producers to less efficient member producers.

Brexit

The British exit from the European Union, which raised issues of sovereignty, economic control, and immigration.

NAFTA

The North American Free Trade Agreement, a trade pact between the US, Canada, and Mexico that eliminated tariffs on most goods.

USMCA

The United States-Mexico-Canada Agreement, which modernized and replaced NAFTA with updated trade rules.

Euro

The common currency adopted by 19 of the 28 EU member states, aimed at facilitating trade and economic integration.

EFTA

The European Free Trade Association, a regional trade agreement among Iceland, Liechtenstein, Norway, and Switzerland.

GATT

The General Agreement on Tariffs and Trade, a treaty aimed at promoting international trade by reducing trade barriers.

WTO

The World Trade Organization, an international organization that regulates international trade.

AFTA

ASEAN Free Trade Area, aimed at increasing trade and economic integration among ASEAN members.

Mercosur

A South American trade bloc that includes Argentina, Brazil, Paraguay, and Uruguay, aimed at promoting free trade.

Investment Opportunities

New avenues for economic growth that arise from regional economic integration and trade agreements.

Cultural Differences

Variations in cultural practices and norms that can impact business operations and trade.

Intellectual Property Rights

Legal rights that provide creators protection for their inventions and creations.

Tariff

A tax imposed on imported goods, raising prices to protect domestic industries.

Trade Fortress

A term describing a situation where trade barriers restrict access to markets, limiting competition.

Market Access

The ability of a company or country to engage in trade with others, often impacted by tariffs and regulations.

Supply Chains

The network between a company and its suppliers to produce and distribute a product.