1    Multinational Market
   Regions and Market Groups
   Suppose IBM wants to sell computers to all European nations - can they
               increase efficiency and work with several countries at the same time?
   Suppose Campbells wants to see to all countries in Southern Africa - are
               there any ways to help choose which countries to work with first?
 

2    Succesful Economic Union Requirements
   Economic Compatibility - what is level of development
   Political Compatibility - are the governments the same philosophy?
   Geographic Proximity - not always, look at Hong Kong
   Cultural Compatibility - do they think similarly?
   Weakness in some must be balanced by strengths in others - also barriers to
               entry by nonmember countries
   Why do countries try to work together?  Cooperate in building
               infrastructure, build on strengths
   Look at US - suppose each state had its own currency and    laws, own
               advertising regulations and tariffs

3    PATTERNS OF MULTINATIONAL COOPERATION
      BASED ON INCREASING INVOLVEMENT
   Regional Cooperation Groups
   Free Trade Area - free trade within, countries keep their own
               external barriers, no free flow of labor
   Customs Union - free trade within, common tariffs for imports
   Common Market - free trade within, common tariff for imports, free
               flow of labor, common antitrust law
   Political Union - coordinated under one political philosophy

European Trade Areas - 1997*


4    European Union INSTITUTIONS.
   Much money is wasted in developed slightly different products for
               closely-related countries .
   European Commission
   Council of Ministries
   European Parliament
   European Court of Justice
   Will it work?  Can markets be made efficient, reducing trade barriers,
               coordinating laws, without imposing a homogenized culture?

5    Treaty of Amsterdam
   To place employment and citizens' rights at the heart of the Union.
   To sweep away the last remaining obstacles to freedom of movement and to
               strengthen security.
   To give Europe a stronger voice in world affairs.
   To make the Union's institutional structure more efficient with a view to
               enlarging the Union.

6    Level of Involvement with the EU
   1. Firms based in Europe with well-established manufacturing and
               distribution operations in several European countries. They can economize on
               standards approval, patent approval, etc.
   2. Firms with operations in a single EU country. Can determine what is
               needed for products to move within the market.
   3. Firms that export manufactured goods to the EU from an offshore
               location. Can obtain multi-country approvals.
   4. Firms that have not actively exported to EU countries.
   We will consider several of the multinational organizations in class and view their websites.  It is important to try to determine what the trade philosophy is for any specific multinational group.

Draft designs for the euro banknotes

A Comparison of the EU and NAFTA

Commonwealth of Independent States

NAFTA - Canada, U.S., Mexico


NAFTA


NAFTA - Non Tariff Barriers
 


Central European Free-Trade Area (CEFTA)

Southern Cone Free Trade Area (Mercosur)


Comparison of Exports Among Members of APEC and the EC

Future Multinational Trade Groups
 
 


 
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