International Business | Internet Assignments

International Business : The Challenge of Global Competition, 8/e

Donald Ball
Wendell H. McCulloch, California State University Long Beach
Paul L. Frantz, California State University Long Beach
Michael Geringer, California Polytechnic State University
Michael S. Minor, University of Texas Pan American

Internet Assignments

Students:

Included here are some internet/case assignments that you can use to review or that your instructor may give as assignments. Your instructors have been given the answers to these questions and may choose to give them out to you or not.

This case is designed to:

Expose you to differences between multilateral and bilateral trade agreements;
Introduce you to web based information relating to NAFTA; and
Make you aware of the numerous regional trade agreements that are either currently in force or in the process of being finalized.

One of the most important recent developments in the global trade system is the rapid spread of regionalism. Almost every developed or developing country is either participating in a regional trade agreement or is discussing a regional integration arrangement. Among the best-known regional trade agreements are the European Union (EU), the European Free Trade Association (EFTA), the North American Free Trade Agreement (NAFTA), the Southern Common Market (MERCOSUR), the Association of Southeast Asian Nations (ASEAN), the Free Trade Area (FTA), and the Common Market of Eastern and Southern Africa (COMESA). There are, however, a number of other regional trade agreements. A useful site for finding out information about regional trade agreements is found at:

http://www1.worldbank.org/wbiep/trade/RI_map.html .

Over the last ten years, there have been three major changes in regional integration activities. The first is the recognition that reducing tariffs and quotas is not enough to effective integration. Other barriers to the free flow of goods, services, capital and ideas need to be removed before economic integration can occur. The European Union is a good example of this. The second is the movement away from agreements that served to control international activities, to more open agreements aimed at enhancing international activities. The final is the emergence of trade blocs where both high-income industrial countries and developing countries are equal partners in agreements that are designed to bolster the economies of all of the member countries. NAFTA is a good example of this.

Case Instructions:

Answer the following questions:

Some of the regional trade agreements are multilateral and others are bilateral. What is a multilateral trade agreement? What is a bilateral trade agreement? Go here to find out: http://www.usinfo.state.gov/products/pubs/trade/glossac.htm
Give an example of a multilateral trade agreement. What countries are members? Give an example of a bilateral trade agreement. What countries are members? Go here to find out:

http://www1.worldbank.org/wbiep/trade/RI_map.html

As previously mentioned, NAFTA is regional trade agreement. The agreement contains nine key provisions. One of these deals with market access. What do the remaining eight deal with? Go here to find out: http://www.mac.doc.gov/nafta/3001.htm
List five preferential trade agreements involving the European Union.
List four trade agreements involving the United States.
List seven trade agreements involving Latin America.
List three trade agreements involving Asia, Middle East and North Africa.
List seven trade agreements involving Sub-Saharan Africa.