GLOBAL &
REGIONAL
ECONOMIC
COOPERATION &
INTEGRATION
Lessons in International Business and
Trade
Presented By:
GROUP 2
Learning
Objectives
• Understand the global trading system
• Explain how and why the GAAT was created
and what its historical role in international
trade is.
• Know what the WTO is and what its current
impact on international trade is.
• Understand regional economic integration.
• Identify the major regional economic areas of
cooperation.
• Understand how and why peace impacts business
• Describe the role of the United Nations.
• Identify how global businesses benefit from
political and economic stability.
International
Economic
Cooperations among
Nations
• refers to collaborative efforts between
countries to promote trade, investment,
financial stability, and economic growth. It
helps nations tackle global economic
challenges, reduce trade barriers, and
enhance mutual prosperity.
Global Agreement on
Tariffs and Trade
(GAAT)
• Global Agreement on Tariffs and Trade (GAAT) was a
multilateral trade agreement established in 1947 to
promote international trade by reducing tariffs and
other trade barriers.
• The basic underlying principle of GATT was that trade
should be free and equal. In other words, countries
should open their markets equally to member nations,
and there should be neither discrimination nor
preferential treatment.
World Trade
Organization
(WTO)
• The World Trade Organization (WTO) is an
international organization established in 1995 to
regulate global trade, ensure fair competition,
and resolve trade disputes among nations.
• The WTO’s primary purpose is to serve as a
negotiating forum for member nations to dispute,
discuss, and debate trade-related matters.
Regional
Economic
Integration
• agreements among nations to reduce or
eliminate trade barriers and coordinate
monetary and fiscal policies.
• enabled countries to focus on issues that
are relevant to their stage of development
as well as encourage trade between
neighbors.
4 Main Types of Regional
Economic Integration
Free Trade Customs Union Common Market Economic Union
Area • allows for the creation of
• the most basic form of • provides for economic • created when countries
economic cooperation cooperation as in a free- economically integrated enter into an economic
trade zone markets between member agreement to remove
• Member countries
• barriers to trade are countries barriers barriers to trade
remove all barriers to
removed between members • Trade barriers are
trade between and adopt common
countries. removed, as are any economic policies.
themselves but are free
• primary diff. from free trade restrictions on the
to independently movement of labor and
area is that members agree
determine trade policies capital between member
to treat rade with
with nonmember nonmember countries in a countries.
nations. similar mannera
Pros of creating regional agreement
Trade Creation
Employment
Opportunities
Consensus and
Cooperation
Cons involved in creating regional
agreements
Trade Diversion
Employment Shifts &
Reduction
Loss of National
Sovereignty
Major Areas of Regional Economic
Integration and Cooperation
North America:
NAFTA
The goal of North American Free Trade Agreement has been
to encourage trade between Canada, US and Mexico. By reducing
tariffs and trade barriers, the countries hope to create a free-
trade zone where companies can benefit from the transfer of
goods.
In the long run, NAFTA hasn’t been as impactful as its supporters
had hoped nor as detrimental to workers and companies as its
critics had feared.
Major Areas of Regional Economic
Integration and Cooperation
South America:
MERCOSUR
Mercado Comun del Sur, was originally established in 1988 as
a regional trade agreement between Brazil and Argentina and
then was expanded in 1991 to include Uruguay and Paraguay.
MERCOSUR has emerged as one of the most dynamic and
imaginative initiatives in the region. More than this, the
integration is helping transform national relations among South
Americans nations and with the world as a whole, forging a new
sense of shared leadership and purpose.
Other Trade Agreements in the Americas
CARICOM and Andean
CAFTA - DR
Community
• The Caribbean Community and • The Dominican Republic-Central
Common Market, was formed in 1973 by America-United States Free Trade
countries in the Caribbean with intent of Agreement is a free trade agreement
creating a single market with free flow of signed into existence in 2005. Originally,
goods, services or labor. the agreement encompassed discussions
between the US and Central American
• The Andean Community (the Andean countries of Costa Rica, El Salvador,
Pact) is a free trade agreement signed in Guatemala, Honduras and Nicaragua.
1969 between Bolivia, Chile, Colombia,
Ecuador and Peru
Major Areas of Regional Economic
Integration and Cooperation
Europe: EU
The European Union is the most integrated form of economic
cooperation. in 1957, the six nations (France, West Germany,
Italy, Belgium, Luxembourg and the Netherlands) signed the
Treaty of Rome, which established the European Economic
Community and created a common market between the
members.
• Central European Free Trade Agreement is a trade
agreement between non-EU countries in Central and
Southeastern Europe.
• There 23 official and working languages within the EU, and all
official documents and legislation are translated into all of these
Official and Working Languages of
the European Union
Bulgarian French Lithuanian Spanish
Czech German Maltese Swedish
Danish Greek Polish
Dutch Hungaria Portugues
n e
English
Italian Romanian
Estonian
Irish Slovene
Finnish
European Union
Governance
European European Council of
European Court of
Commission Parliament European Union
Council Justice
provides the political provides the day-to-day forms one-half of the EU’s sometimes called the makes up the judicial
leadership for the EU leadership and initiates legislative body. Consists of Council or the Council of branch of the EU.
legislation. It’s the EU’s 751 members, who are Ministers. Consists of a
executive arm elected by popular vote in government minister from
their respective countries. each member country
ASIA
• Association of Southeast Asian Nations
(ASEAN) - primary focus is on economic,
social, cultural, and technical cooperation as
well as promoting regional peace and
stability.
• Asia–Pacific Economic Cooperation
(APEC) -was founded in 1989 by twelve
countries as an informal forum. The only
regional trading group that uses the term
member economies.
Middle East and
Africa
• Gulf Cooperation Council (GCC) - as a
political and economic organization, the
group focuses on trade, economic, and social
issues.
• African Economic Community (AEC) - an
organization of the African Union states.
Signed in 1991 and implemented in 1994, it
provides for a staged integration of the
regional economic agreements.
How Do These Trade
Overall,
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have benefited from the
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Impact Business?
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by
having more consistent criteria
for investment and trade as
well as reduced barriers to
entry. Companies that choose
to manufacture in one country
find it easier and cheaper to
move goods between member
countries in that trading bloc
without incurring tariffs or
additional regulations.
Peace fosters economic
Utilizing Data Analytics for Risk
Why Does Peace Impact stability,Assessment
attracting investment
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conflict. It ensures predictable
markets, strong consumer
confidence, and lower
operational costs, promoting
long-term growth. Additionally,
peace supports stable
currencies and free trade,
making global business
transactions smoother and
more reliable.
Why does Peace Impact
Business?
Peace provides the foundation for sustainable business
growth by ensuring economic stability, attracting
investment, reducing risks, and fostering consumer
confidence.
Staffing Operations Regulations
is the process of It includes
recruiting,
Compliance with
managing
selecting, training,
resources, supply regulations helps
and managing
chains, production, maintain stability,
employees to
ensure a business quality control, prevent legal
and logistics to
has the right issues, and build
people in the right ensure smooth
roles. business functions. public trust.
Why does Peace Impact
Business?
Peace provides the foundation for sustainable business
growth by ensuring economic stability, attracting
investment, reducing risks, and fostering consumer
confidence.
Currency convertibility and
free-flowing capital
Countries in conflict often
experience capital flight, inflation,
and currency devaluation, making
business transactions more
challenging. Peace fosters
financial stability, ensuring a
predictable economic
environment.
UNITED NATIONS SIX MAIN BODIES
General Assembly
Security Council
Economic and Social
Council (ECOSOC)
Secretariat
International Court of Justice
UN Trusteeship Council
THANK
YOU
For Your Attention and Participation
GROUP 2
Espina, James Hendrix
Gempes, Janea Mae
Hernandez, Lurraine
Marco, Zusette
Panganiban, Khyla
Platero, Zaire Hannah