...Getting to Know Mercosur Zak K. Blondis University of Memphis: Fogelman College of Business and Economics Abstract This paper is a brief overview of Mercosur and its current state, and will focus on the background, formation, global and regional impact of Mercosur and its members as well as the current dilemmas that are being faced. Issues ranging from economic to political will be discussed throughout. Internal disputes and protectionist policies place Mercosur in an uncertain situation as they focus to defend their own domestic products all whilst maintaining a steady external trade. A continuing worldwide economic power house, Mercosur continues to struggle with certain facets of trade and political structure. Background South America throughout past decades has seen bloodshed and political instability, and despite much improvement there is still reoccurring corruption to date. Although the Pablo Escobar reign in Colombia, Noriega’s rule in Panama, and Castro’s hold on Cuba are no longer relevant, there still remains similar political instability today. Mercosur directly translated is Mercado Comun del Sur, or The Southern Common Market, and is a trade bloc for six of South America’s member nations (See Appendix A for current member countries) where they enjoy free trade, very similar to that of the North American Free Trade Agreement, where the goal is full South American economic integration. Enacted in 1991 under the Treaty of Ascuncion, Mercosur was created...
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...Americas logo The Free Trade Area of the Americas (FTAA) (Spanish: Área de Libre Comercio de América [ALCA], French: Zone de libre-échange de Amérique [ZLÉA],Portuguese: Área de Livre Comércio das Américas [ALCA], Dutch: Vrijhandelszone van Amerika) was a proposed agreement to eliminate or reduce the trade barriers among all countries in the Americas excluding Cuba. In the latest round of negotiations, trade ministers from 34 countries met in Miami, United States, in November 2003 to discuss the proposal.[1] The proposed agreement was an extension of the North American Free Trade Agreement (NAFTA) between Canada, Mexico, and the United States. Opposing the proposal were Cuba, Venezuela, Bolivia, Ecuador, Dominica, Nicaragua and Honduras (all of which entered theBolivarian Alternative for the Americas in response), and Argentina, Chile and Brazil. Discussions have faltered over similar points as the Doha Development Round of World Trade Organization (WTO) talks; developed nations seek expanded trade inservices and increased intellectual property rights, while less developed nations seek an end to agricultural subsidies and free trade in agricultural goods. Similar to the WTO talks, Brazil has taken a leadership role among the less developed nations, while the United States has taken a similar role for the developed nations. Free Trade Area of the Americas began with the Summit of the Americas in Miami on December 11, 1994, but the FTAA came to public attention during the Quebec City...
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...NAME: REG NO: UNIT: TASK: LECTURER: UNIVERSITY: NAFTA (North America Free Trade Agreement) whose source credited to Information Trade Center in US through the Department of Commerce implemented in 1994.Usually, comprehensive trade agreement improves almost all aspects of transacting businesses within North America.NAFTA removes almost all tariffs between the US and Canada and removes many of the non-tariff barriers for instance import licenses. The latter has helped in exclusion of U.S. goods from other two markets and mostly Mexico.NAFTA ensures that investment won’t be forced by restrictive government policies such as U.S. investors receiving treatment that is equal to domestic investors in both Canada and Mexico. More so, NAFTA ensures that if U.S. happens not to invest in another country, they are usually set free and granted the freedom not to.NAFTA also provides for guaranteed access to lucrative government procurement contracts in Canada and Mexico.NAFTA destroys American Sovereignty via the creation of supranational panels and commissions. It also castigates courts by infringing on and overriding their jurisdiction as well as giving no stand to seek state redress. Since the implementation of the unconstitutional NAFTA, America has tremendously lost several hundreds of thousands of jobs. Generally has led to the loss of jobs rather than creating jobs as was expected. (Mace, G. (2007). CAFTA (Central American Free Trade Agreement), free trade agreement or treaty...
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...Mercosur: Present and Future Xiao Li Brenau University 02/20/2012 Mercosur: Present and Future Background Mercosur, known as the Common Market of the South, was founded by Paraguay, Uruguay, Brazil and Argentina under the Treaty of Asuncion signed in March 1991, which was amended and updated by the 1994 Treaty of Ouro Preto, it took effect on January 1, 1995 and formalised a customs union (Connolly, 1999). Mercosur’s headquarter is in Montevideo, Uruguay . Several other countries were admitted as associate members including Chile, Bolivia, Colombia and Peru. Venezuela is currently in the process of integrating into the bloc and it will become a full member once all members’ parliaments ratify its accession (Bosworth, 2011). Since it was established, Mercosur has made remarkable achievements. It is now South America’s leading economic integration organization and the world's fourth largest integrated market after the European Union, North American Free Trade Agreement and the Association of South East Asian Nations. Moreover, the scope of cooperation is expanding to other areas, particularly the political and diplomatic fields. Objectives Mercosur’s main objectives include: through the effective use of resources, coordination of macroeconomic policies, to strengthen the economic complementation and promote economic development, thereby improving people's living conditions, and promoting regional economic integration...
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...10/24/2014 Mercosur: South America's Fractious Trade Bloc - Council on Foreign Relations Mercosur: South America's Fractious Trade Bloc Authors: Joanna Klonsky, Associate Editor, Stephanie Hanson, and Brianna Lee Updated: July 31, 2012 This publication is now archived. Introduction What is Mercosur? What are associate members? Why was Paraguay suspended as a Mercosur member? What are the implications of Venezuela joining as a full member? Does Mercosur have a political agenda? How does Mercosur affect other regional groups? How has Mercosur stimulated cooperation among its members? What are the prospects for Mercosur's future? Introduction Mercosur, the "Common Market of the South," is an economic and political agreement among Argentina, Brazil, Paraguay (which is currently suspended), and Uruguay to promote the free movement of goods, services and people among member states. Mercosur's primary interest has been eliminating obstacles to regional trade, such as high tariffs and income inequalities. Yet experts say Mercosur has become somewhat paralyzed in recent years, with its members divided over whether the organization should remain focused on regional trade or whether it should add political affairs to its mandate. In July 2012, Venezuela was admitted to the trade bloc as its fifth full member with complete access to the common market and voting rights, a move that some analysts say will primarily benefit Argentina and Brazil and further politicize the organization...
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...Claudia Perez Chapter 9 (Critical Discussion Questions) 1. NAFTA has produced significant net benefits for the Canadian, Mexican, and U.S economies. Discuss. The North America Free Trade Agreement (NAFTA) was passed in 1994. Starting with eliminating the majority of taxes on products traded between the three countries fallowed with a gradual phase-out of other tariffs. The Agreement contributed to more exports. The two way trade between Mexico and the U.S has more than quadruple since the agreement was implemented. Another direct effect is more investments. The U.S is the largest foreign direct investment in Mexico. Investments in Mexico have helped increase the efficiency of U.S domestic production. Also more jobs were created. Even thou some jobs were lost, more and better jobs were created. In conclusion this agreement has benefited all three countries from more free trade. 2. What are the economic and political arguments for regional economic integration? Given these arguments, why don’t we see more substantial examples of integration in the world economy? The economic argument for regional integration is mostly positive. It’s based on the presence of extra gains from the free flow of trade and investment between the countries involved in the agreement. The political argument is that it is mainly based on geography. The participating countries have to be neighboring countries, and many neighboring countries have border disputes lessing the possibilities for regional...
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...member states of the hemisphere; from Canada to Argentina. The AGM will precede a three day public Symposium and Workshop session which will highlight several Metrology topics. SIM is an association made up of all the National Metrology Institutions of the members of the Organisation of American States. In its own words SIM considers that its functions are;“… to promote international, particularly Inter-American, and regional cooperation in metrology, SIM is committed to the implementation of a Global Measurement System within the Americas, in which all users can have confidence. Working towards the establishment of a robust regional measuring system, SIM is essential for making the development of a free trade area in the Americas (FTAA) possible. “ National Metrology has been a legal consideration in Trinidad and Tobago since early in the 20th Century as evidenced by the Weights and Measures Ordinance of 1938. Modernisation of the national metrology system and the introduction of the metric system were attempted in the early 1970’s with the introduction of the Metrication and Metrology Bills. The passage of the Metrology Act was not accomplished until 2004 which meant that the creation of a modern national metrology system has remained in abeyance for a number of years. Since the passage of the Act into law in 2004 Trinidad and Tobago has joined a growing number of countries of the Caribbean in the development of an effective metrology system. Pressures from the...
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...Regional Economic Integration Learning objectives • Be able to explain the different levels of regional economic integration. • Understand the economic and political arguments for regional economic integration. • Understand the economic and political arguments against regional economic integration. • Be familiar with the history, current scope, and future prospects of the world’s most important regional economic agreements. • Understand the implications for business that are inherent in regional economic integrations agreements. This chapter discusses regional economic integration, agreements among countries within a geographic region to achieve economic gains from the free flow of trade and investment among themselves. There are five levels of economic integration. In order of increasing integration, they include free trade area, customs union, common market, economic union, and full political union. Integration is not easily achieved or sustained. Although integration brings benefits to the majority, it is never without costs for the minority. Concerns over sovereignty often slow or stop integration attempts. The creation of single markets in the EU and North America means that many markets that were formerly protected from foreign competition are now more open. This creates major investment and export opportunities for firms within and outside these regions. The free movement of goods across borders...
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...MINING I INTRODUCTION Brief Historical Background Digging deep into history, mining in the Philippines is one of the oldest industries in the country. Gold mining in Luzon started even in the 3rd century as reported by the Chinese merchants. Before the advent of the Spanish rule, metals—primarily gold—played an important role in shaping traditions and rituals, in indigenizing certain features of Filipino beliefs, and in developing patterns of wealth, power and authority during the period. The spirit of Spanish expansionism was at its crest when it reached the Philippines in the second half of the sixteenth century. The archipelago became the base of further efforts to conquer and evangelize new areas and design new trade routes in search primarily of spices but also of gold and other precious merchandise. The Spaniards failed to develop mining in the country, but left behind one of the basic building blocks of the present-day mining laws–the Regalian Doctrine. In essence, the Regalian Doctrine stipulates that all minerals and substances underneath all lands, public or private belong to the state. In effect, the law rests on the principle of eminent domain which reserves to the state the right to develop the mines on its own initiative or through private concessions. With the Americans, mining industries accelerated as the country’s economy strengthened its links to the needs of the industrialized countries like the US. The growth of the mining industry in the Philippines...
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...GMS 200 Lecture 3: Global Dimensions of Management * The international management challenges of globalization * Key concepts in the challenges of globalization: Global economy, Globalization, International management, Global manager * Europe- European Union (EU) * The Americas- NAFTA, FTAA * Asia & Pacific * Africa- SADC (South Africa Development Community), ECOWAS (Economic community of West African States) * Forms and opportunities of international business * Reasons for engaging in international business: Profits, Customers, Suppliers, Capital, Labour * Market entry strategies involve the sale of goods or services to foreign markers but do not require expensive investments * Types of market entry strategies: Global sourcing, exporting, importing, licensing agreement, franchising * Direct investment strategies require major capital commitments but create rights of ownership and control over foreign operations * Types of direct investment strategies: Joint ventures, foreign subsidiaries * Criteria for choosing a joint venture partner: Familiarity with your firm’s major business, strong local workforce, future expansion possibilities, strong local market for partner’s own products, good profit potentials, sound financial standing * Complications in the global business environment: Environment is complex, dynamic and highly competitive, global business...
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...Jonathan P. Doh and Terrence R. Guay GLOBALIZATION AND CORPORATE SOCIAL RESPONSIBILITY: HOW NONGOVERNMENTAL ORGANIZATIONS INFLUENCE LABOR AND ENVIRONMENTAL CODES OF CONDUCT Abstract • Concerns over the potential negative spillovers from globalization have resulted in increasing demands for multinational corporations (MNCs) to adhere to international standards and codes of responsibility. Nongovernmental organizations (NGOs) have been important advocates for development and adoption of these standards and codes. • In this paper, we provide a brief review of the emergence of NGOs and their influence on debates about globalization, and a specific assessment of NGO efforts to promote stronger labor and environmental policies of multinational corporations. • We examine the role of NGOs in development and enforcement of twelve international agreements and codes of conduct addressing labor issues and environmental practices. We use findings from these cases and insights from international business and other managerial theory to develop propositions that explain the circumstances under which NGOs have more or less influence in developing and enforcing international codes. Key Results • We suggest NGOs will achieve the greatest impact on codes of conduct when: 1) they intervene early in the code development process; 2) they forge transnational coalitions with other organizations, including other NGOs, MNCs, and governments; 3) codes are devised...
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...BLC Essay 2 Isidro Morales describes US trade policies towards Latin America as a ‘neo-liberal corporate-led agenda’. Discuss the validity of his claim, as well as the desirability of extending the model of regional integration preferred by Washington to all of the Americas. “Since trade ignores national boundaries and the manufacturer insists on having the world as a market, the flag of his nation must follow him, and the doors of the nations which are closed against him must be battered down. Concessions obtained by financiers must be safeguarded by ministers of state, even if the sovereignty of unwilling nations be outraged in the process. Colonies must be obtained or planted, in order that no useful corner of the world may be overlooked or left unused.” Woodrow Wilson, President of the United States, 1919 Madalina Daniela Costache Robert Ibsen British and American Studies – 2XBF November 8th 2013 Number of words: 938 With the emergence of the Washington consensus, the US foreign policy shifted towards a neoliberal model in order to deal with the pressures incited by globalization. Neoliberal theory argues for the development of a free market economy where there is a high degree of free individual choice, and which achieves efficient economic performance by reducing the state’s intervention solely to “defining property rights, enforcing contracts, and regulating the money supply” (Kotz 2000). This essay argues that, as Morales claims, the US does pursue a...
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...North American Economic Integration: NAFTA and Beyond Dr. Igor M. Paramonov, Southern Alberta Institute of Technology, Calgary, AB, Canada ABSTRACT This paper examines various possibilities for future economic integration within and beyond the North American Free Trade Agreement (NAFTA). Previous publications have suggested three potential trajectories including development within the envisioned original structure, deepening, and widening of NAFTA (Clement et al, 1999). It is necessary to revisit these directions while summarizing major developments and new perspectives. Vision and hard work are required for NAFTA to remain one of the most economically competitive regional trading arrangements in the world. In addition to NAFTA, each member nation has pursued its own plans to integrate with countries and regions beyond North America. The most recent developments involve trade negotiations between Canada and the European Union, as well as both Canada and Mexico’s considerations to join the nine countries of the Trans-Pacific Partnership Pact. The United States cooperates with a group of smaller developing economies within the Dominican Republic-Central America-United States Free Trade Agreement (CAFTA-DR). This paper presents ongoing analysis of governmental, academic, and other sources for the purpose of teaching in the field of international business, including the uncommon course of “Business under NAFTA.” INTRODUCTION Is the “Age of NAFTA” over? This is a legitimate...
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...An example of South South cooperation: The ALBA-TCP Agreement The Bolivarian Alliance for People of Our America and the People’s Trade Treaty Case Study in International Negotiations Faculdade de Economia Universidade de Coimbra Irene Padovese Summary 1.Introduction………………………………………………………………………………............ 2. Pre-negotiations and historical context………………………………………………………. 3.The Negotiation process………………………………………………………………………. a. Negotiations I…………………………………………………………………………….. b. Negotiations II……………………………………………………………………………. 4. Summitry and multilateralism………………………………………………………………… 5. Impasse on Negotiation: The case of Honduras………………………………………....... 6. Asymmetries and Behaviour: Hugo Chavèz………………………………………………… 7. Conclusion……………………………………………………………………………………… 8. Bibliography……………………………………………………………………………………………… Introduction 1. Definition ALBA defines itself as "the Latin American option that fights for the autodetermination and sovereignty of people of its regions", especially, against of what they define "all the imperialistic politics of United States of America". (Alianza Bolivariana para nuestros pueblos de America, 2004) In other words, it is an integration platform that focuses on solidarity, complementarity, justice and cooperation between countries of Latin America that want to achieve together the level of "integral development through its own alternative way, in the middle of the increasing...
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...Agreement (NAFTA), the Canada-US Free Trade Agreement (CUSTA), and the US-Israel Free Trade Agreement; (3) in Latin America, the Common Market of the South Latin American Integration Association (LAIA), and the Caribbean Community and Common Market(CARICOM) (Jones, 2010) Trade blocs are good because they remove trade barriers between countries. They also regulate the price and trade terms of trade between the two countries. Trade blocs also have a positive impact on welfare if they are more trade creating and less trade diverting. “George Orwell predicted that trade blocs would evolve into continent-spanning empires with ever-changing alliances. The eastward expansion of the EU and use of the Euro, southern expansion of NAFTA into the FTAA, and increasing co-operation in Asia would seem to validate this prediction.” (Jones, 2010) Economist Jeffrey J. Scott of the Peterson Institute for International Economics notes that members of successful trade blocs usually share four common traits: similar levels of per capita GNP, geographic proximity, similar or compatible trading regimes, and political commitment to regional...
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