Global Trade Environment

These flashcards cover key concepts related to global trade and preferential trade agreements as discussed in the Global Marketing lecture notes.

World Trade Organization (WTO)

An international organization that regulates and facilitates global trade relations among nations, formed on January 1, 1995.

General Agreement on Tariffs and Trade (GATT)

A treaty among nations established in 1947 to promote trade, which was replaced by the WTO in 1995.

Dispute Settlement Body (DSB)

A WTO mechanism for resolving trade disputes, involving a 60-day negotiation period, possible advancement to a 3-member panel, and the Appellate Body.

Preferential Trade Agreements (PTAs)

Agreements that give special treatment to partners and may discriminate against non-partners, with over 350 PTAs notified to the WTO.

Free Trade Area (FTA)

A type of PTA where countries abolish tariffs among themselves while maintaining independent trade policies with non-members.

Customs Union

An evolution of a Free Trade Area that eliminates internal barriers and establishes common external tariffs.

Common Market

A PTA that allows free movement of factors of production while eliminating internal and establishing common external barriers.

Economic Union

A comprehensive form of integration that includes free movement of factors, common external barriers, and coordination of economic policies.

United States-Mexico-Canada Agreement (USMCA)

The trade agreement that replaced NAFTA in 2020, creating a free trade area among the U.S., Mexico, and Canada.

Central American Integration System (SICA)

A regional agreement involving Central American countries that is moving towards a common market.

Andean Community

An integration group comprised of Bolivia, Colombia, Ecuador, and Peru, which has evolved into a customs union.

Common Market of the South (Mercosur)

A regional trade bloc in South America including Argentina, Brazil, Paraguay, and Uruguay, initiated in 1995.

Caribbean Community and Common Market (CARICOM)

An organization founded in 1973 to promote economic integration and cooperation among Caribbean nations.

Association of Southeast Asian Nations (ASEAN)

A regional intergovernmental organization comprising ten Southeast Asian countries, aimed at promoting political and economic cooperation.

Eurasian Economic Union (EEU)

A regional organization comprising Russia, Belarus, Kazakhstan, Kyrgyzstan, and Armenia, aimed at political and economic integration.

African Growth and Opportunities Act (AGOA)

A U.S. trade act to enhance trade and investment in sub-Saharan Africa, promoting ‘trade, not aid’.