Trade Agreements, Alliances, and Organizations General Agreement on Tariffs and Trades (GATT) Water Trade agreement signed by 23 nations in 1947, provided a forum for tariff negotiations and a place where international trade problems could be discussed and resolved World Trade Organization (WTO) International organization dealing with the rules of trade between nations, evolved from GATT 1 © 2017 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.

Trade Agreements, Alliance, and Organizations North American Free Trade Agreement (NAFTA) Agreement that eliminates most tariffs and trade restrictions on agricultural and manufactured products to encourage trade among Canada, the U.S. and Mexico 2 © 2017 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.

NAFTA While controversial, NAFTA has become a positive factor for U.S. firms Effective January 1, 1944 Easier to invest in Mexico and Canada Protects intellectual property Expands trade by requiring equal treatment Simplifies country-of-origin rules 3 © 2017 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.

European Union and Asia-Pacific Economic Cooperation European Union (EU) A union of European nations established in 1958 to promote trade among its members; one of the largest single markets today The EU has a GDP of $17 trillion+ Asia-Pacific Economic Cooperation (APEC) An international trade alliance that promotes open trade and economic and technical cooperation among member nations Holds 55% of world GDP 4 © 2017 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.

APEC Asia-Pacific Economic Cooperation –Companies associated with APEC have become increasingly competitive and sophisticated in global business in the past three decades –Member nations: AustraliaIndonesiaMalaysiaSingapore ChinaMexicoPeruJapan ThailandHong KongRussiaCanada KoreaPhilippinesUnited StatesChile New ZealandChinese TaipeiVietnam Brunei DarsussalamPapua New Guinea 5 © 2017 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.

ASEAN, World Bank, and International Monetary Fund Association of Southeast Asian Nations (ASEAN) –A trade alliance that promotes trade and economic integration among member nations in Southeast Asia –Has a GDP of $2 trillion World Bank –An organization established by the industrialized nations in 1946 to loan money to underdeveloped and developing countr ies International Monetary Fund –Established in 1947 to promote trade among member nations by eliminating trade barriers and fostering financial cooperation 6 © 2017 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.