Chapter8发表.ppt

Chapter8 Regional Economic Integration Learning Objectives Define regional economic integration and identify its five levels. Discuss the benefits and drawbacks of regional economic integration. Describe regional integration in Europe and its pattern of enlargement. Discuss regional integration in the Americas and analyze its future prospects. Characterize regional integration in Asia and how it differs from integration elsewhere. Describe integration in the Middle East and Africa and explain the slow progress. Nestle ’s Global Recipe Although based in small Switzerland ,Nestle sells its products in nearly every country on the planet. Nestle is the world’s largest food company. What is regional economic integration? Regional economic integration The process whereby countries in a geographic region cooperate to reduce or eliminate barriers to the international flow of products, people , or capital is called regional economic integration. The goal of nations undergoing economic integration is not only to increase cross-border trade and investment but also to raise living standards for their people such as protection of intellectual property rights or the environment or even eventual political union. Levels of Regional Integration Free Trade Area: Economic integration whereby countries seek to remove all barriers to trade between themselves , including all tariffs and non-tariff barriers such as quotas and subsidies. Customs Union: Economic integration whereby countries remove all barriers to trade among themselves, but erect a common trade policy against non-members, is called a customs union. Common Market: Economic integration whereby countries remove all barriers to trade and the movement of labor and capital between themselves, but erect a common trade policy against nonmembers, is called common market. Levels of Regional Integration Economic Union :Economic integration whereby countries remove barrier to trade and the movement of labor and capi