multinational market regions and market groups. multinational market regions and market groups...
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Multinational MarketRegions and Market Groups
Multinational MarketRegions and Market Groups
I. Patterns of Multinational Cooperation1) Regional Cooperation Groups
2) Free Trade Area
3) Customs Union
4) Common Market
5) Political Union
The European Economic Area: EU, EFTA, and Associates
ICELAND
NORWAY
SW
ED
EN
FINLAND
DENMARK
IRELAND
UNITED
KINGDOM
BELGIUM
Netherlands
GERMANY
FRANCE
SPAINPortugal
Switz.
ITALY
Austria
TURKEY
GREECE
ATLANTIC OCEAN
MALTA
EUEFTAEC Associated
II. Europe1) European Union
a) Implications for European Firms
- Lower transaction/transport costs
- Economies of Scale in production
- Gains from competition
b) Free Expansion to Other European
Markets
- Access to > 370 million consumers
- Flexible production
- Harmonization of laws/standards
A Comparison of the EU and NAFTA
* Includes 15 Countries.
**Includes intra-member trade.
EU* 373.5 $ 8,180 1,899,466 1,927,914
NAFTA 387.4 8,061 1,014,211 852,536
Population GNP Imports** Exports**($ millions)* (per capita)* ($ millions) ($ millions)
SOURCES: “Indicators of Market Size for 115 Countries,” Crossborder Monitor, August27, 1997; and International Marketing Data and Statistics, 1997 (London: Euromonitor,1997).Irwin/McGraw-Hill
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c) European Union Implications for U.S. Firms
- Easier access to European markets
- Potential growth in demand for U.S. products
- Increased competition
- Fears of “Fortress Europe”
Marketing Mix Implications of EU
2) EFTA
3) CEFTA
EC Institutions
European CommissionEuropean Commission
Council of MinistriesCouncil of Ministries
European ParliamentEuropean Parliament
European Court of JusticeEuropean Court of Justice
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Commonwealth of Independent States
RUSSIAN REPUBLIC
ARCTIC OCEAN
Twelve republics, each with their own legislaturesTwenty smaller “autonomous republic” or homelands for various ethnic groups
KAZAKHSTAN
BELARUS
UKRAINE
MOLDOVA
GEORGIA
ARMENIA
AZERBAIJAN
TURKMENISTANUZBEKISTAN
TAJIKISTANKYRGYZSTAN
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Central European Free-Trade Area (CEFTA)
Poland Hungary
Slovakia Czech Republic
Slovenia Romania
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North American Free-Trade Area (NAFTA)
Canada Canada
United States United States
Mexico Mexico
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North American Free-Trade Area Provisions
Market Access Non Tariff Barriers
Rules of Origin Customs Administration
Investment Services
Intellectual Property Standards
Government Procurement
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NAFTA Rules of Origin
Rule Type Description
Tariff shift rule Non-NAFTA imports undergo sufficient manufacture or
processing to become products that can qualify under a different tariff classification.
Value-content rule A set percentage of the value of the good must be North American (usually coupled with a tariff classification shift requirement). Some goods are subject to the value-content rule only when they fail to pass the tariff classification test because of non-NAFTA inputs.
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* A complete description of the rules of origin can be found at www.mac.doc.gov/nafta/menu1.htm (select NAFTA Rules of Origin and Customs Information).
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Southern Cone Free Trade Area (Mercosur)
Argentina Bolivia
Brazil Chile
Paraguay Uruguay
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Latin American Integration Association (LAIA)
Argentina Mexico
Bolivia Paraguay
Brazil Peru
Chile Uruguay
Columbia Venezuela
Ecuador
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Andean Common Market (ANCOM)
BoliviaBolivia
ColumbiaColumbia
EcuadorEcuador
PeruPeru
VenezuelaVenezuela
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Panama (Assoc.)Panama (Assoc.)
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Caribbean Community and Common Market (CARICOM)
Antigua Montserrat Barbuda St. Kitts-Nevis Belize Anguilla Dominica St. Lucia Grenada St. Vincent Guyana Trinidad-Tobago Jamaica
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Central America Common Market (CACM)
GuatemalaGuatemala
Costa RicaCosta Rica
NicaraguaNicaragua
HondurasHonduras
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The Future
• NAFTA
• SAFTA ???
• FTAA ???
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Association of Southeast Asian Nations (ASEAN)
Brunei Philippines
Indonesia Singapore
Laos Thailand
Malaysia Vietnam
Myanmar
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ASEAN + 3
• Brunei • Singapore
• Indonesia • Thailand
• Laos • Vietnam
• Malaysia China
• Myanmar Japan
• Philippines South Korea
Comparison of Exports Among Members of APEC and the EC
APEC 2,235 732,869 770,097 22,952
Americas* 406 306,486 311,085 7,989
Asia 1812 399,455 419,901 6,447
Oceania 22 26,928 34,111 343
EC 374 515,915 628,606 8,180
Population, 1989 Exports, 1990 Exports, 1995 GNP, 1996(millions) (U.S. $ millions) (U.S. $ millions) (U.S. $ billions)
SOURCES: IMF: International Financial Statistics, Direction of Trade; OECD:National Account, EC Committee: “Indicators of Market Size for 115 Countries,”Crossborder Monitor, August 27, 1997; and International Marketing Data and Statistics.1997 (London: Euromonitor, 1997).
*includes: U.S., Canada, Mexico, and Chile.
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Economic Community of West African States (ECOWAS)
Benin Liberia Burkina Faso Mali Cote d’ Ivoire Mauritania Gambia Niger Ghana Nigeria Guinea Guinea-Bissau
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Southern African Development Community (SADC)
Angola South Africa Botswana Swaziland Lesotho Tanzania Namibia Zambia Malawi Zimbabwe Mauritius
Mozambique
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Afro-Malagasy Economic Union
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▶ Benin Gabon▶
▶ Burkina Faso Mali▶
▶ Cameroon ▶Mauritania
▶ Central African Republic Niger▶
▶ Chad Senegal▶
▶ People’s Repub. of the Congo Togo▶
▶ Cote d’Ivoire
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East African Customs Union
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▶ Ethiopia Tanzania▶
▶ Kenya Uganda▶
▶ Sudan Zambia▶
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▶ Algeria Tunisia▶
▶ Libya Morocco▶
Maghreb Economic Community
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Economic Community of West African States (ECOWAS)
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▶ Burkina Faso Liberia▶
▶ Cote d’Ivoire Mali▶
▶ Gambia Mauritania▶
▶ Ghana Niger▶
▶ Guinea Nigeria ▶
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West Africa Economic Community
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● West Africa Economic Community
▶ Senegal Mali▶
▶ Togo Mauritania▶
▶ Burkina Faso Niger▶
▶ Cote d’Ivoire
● Customs and Economic Union of Central Africa (CEUCA)
▶ Cameroon P. Rep. Of Congo▶
▶ C. Africa Repub. Gabon▶
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▶ Cameroon P. Rep. Of Congo▶
▶ C. Africa Repub. Gabon▶
Customs and Economic Union of Central Africa (CEUCA)
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Arab Common Market
IraqIraq
KuwaitKuwait
JordanJordan
SyriaSyria
EgyptEgypt
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Economic Cooperation Organization (ECO)
PakistanPakistan
IranIran
TurkeyTurkey
AzerbaijanAzerbaijan
TurkmenistanTurkmenistan
UzbekistanUzbekistan
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Future Multinational Trade Groups
United States/Japan
Hong Kong/Taiwan/China
Asia-Pacific Rim Countries
Hong Kong/Taiwan/Coastal Provinces of Southern China
Western Hemisphere Free Trade Area
Transatlantic Free Trade Area (United States and European Union)
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