PowerPoint Template

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Chapter 10 Europe, Africa and the Middle-East
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CHAPTER OUTLINE

• Markets in Europe, Africa and Middle-East
• Why economic union/integration?
• Types of integration
• Integration and Strategic Implications
• Regional Groups in the World
• Studying Regional Groups

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WHY ECONOMIC INTEGRATION ? FACTORS FAVORING
INTEGRATION

• Economic/market factors
• market expansion
• economies of scale
• production efficiency
• Political factors (will of a nation)
• Geographic proximity
• Cultural factors

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TYPES OF INTEGRATION

• Regional Cooperation Groups most basic form
• Free Trade Area no internal tariff
• Customs Union no internal tariff and common
  external tariff
• Common Market no internal tariff, common
  external tariff and factor mobility
• Political Union no internal tariff, common
  external tariff, factor mobility, and economic
  and political union
• United States of Europe, possible?

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INTEGRATION AND STRATEGIC IMPLICATIONS

• Trade creation vs. trade diversion debate
• Implications for International Marketing
• Larger market means no barriers to trade and more
  opportunities
• Standardization of the marketing mix
• Economic efficiency and cost
• Economic growth
• Political and peace implication

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REGIONAL GROUPS IN THE WORLD

• NAFTA
• European Union
• MERCOSUR
• ASEAN
• Asian Groups
• Latin American groups
• African Groups
• Arab Groups

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STUDYING REGIONAL GROUPS ( AN APPROACH)

• History and background
• Membership current and future
• Organizational structure
• Success/ failures, so far
• Present and future role in the region and the
  world
• Role beyond economics--politics, culture etc.

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STUDYING REGIONAL GROUPS ( AN APPROACH)
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DISCUSSION QUESTIONS

• What is economic integration? What factors favor
  integration? Explain.
• What are the different types of integration?
  Explain.
• Explain the implications of ecnomic integration
  in international marketing.
• How can we evaluate various integration groups?
  Explain.
• How is EU different from NAFTA? Explain.