Chapter 7 : International and Regional Trade Organizations, Etc'

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Chapter 7 International and Regional Trade
Organizations, Etc.

• Alejandro Velez, Ph.D.
• St. Marys Univ.

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Introduction

• Chapter continues discussion of how governments
  practice Commercial Policy
• It identifies major initiatives on world and
  regional bases, including WTO, and EU.

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Topics of Discussion

• Economic models underlying trade
  liberalization(CONSUMER SURPLUS..
• Economic models underlying regional trade blocks
  (TRADE CREATION, ETC.
• WTO
• SOME IMPORTANT TERMS INCLUDE EU, NAFTA, MFN,
  LOME CONVENTION, EEA, KEIRETSU, URUGUAY
  ROUND,TRANSITION ECONOMICIES, PRIVATIZATION

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Economics Underlying Trade LiberalizationAnd
Regional Trade Blocks

• Comparative Advantage Principle
• Tariff Model for Small and Large Countries
• Economies of Scale
• Liberalization as Anti-Inflation Strategy,
  Currency Boards
• Trade Creation and Diversion

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World Trade Organization (1995-Present)

• Continuation of GATT (MFN, Etc.)
• Improvement over GATT

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SOME IMPORTANT NEW TERMS INCLUDE EU, NAFTA, MFN,
LOME CONVENTION, EEA, KEIRETSU, URUGUAY
ROUND,TRANSITION ECONOMIES, PRIVATIZATION

• Definitions and Illustrations for Each
• A Closer Look at NAFTA, ANDEAN PACT, MERCOSUR
  (plenty on the web)
• A Closer Look at Dispute Resolution

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UPDATE

• Jan 1, 1999 the Euro
• US initiatives may be found at White House home
  page.

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What This Means

• Beyond this course these developments are
  important source of general knowledge, better
  future jobs, and personal advancement

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Summary of Key Points

• Europe Is Growing in Strength
• NAFTA Is Maturing (go on the web)
• Latin America is Exerting Growing Independence
  and Sophistication
• Economic Models Have Been Useful in Terms of
  Spreading Faith In Trade Liberalization
• Asian and Other Crises Have Shaken Confidence in
  Globalization but Only Temporarily!