1. Introduction to International Business David J. Boggs, Ph.D.

2. Regional Economic Integration Free-trade area—no internal tariff Customs union—common external tariffs Common market—factor mobility Complete economic integration — common monetary and fiscal policy

3. Some Trade Associations EU NAFTA MERCOSUR CAFTA-DR CARICOM APEC Andean Community ASEAN ECOWAS

4. Effects of RTAs Internal shifts of economic activity due to relaxed barriers to free trade Preference given to members while external countries may be excluded Encourage foreign companies to locate R&D, production, and sales within region Loss of national sovereignty

5. World Trade Organization GATT (1947-1995) Establish multilateral rules of international trade Arbitration of disputes

6. United Nations Security Council General Assembly Peacekeeping Specialized agencies health, postal, children, trade, energy, agriculture, education, telecommunications Publications

7. The World Bank International Bank for Reconstruction and Development Hard and soft private and public loans to promote development Insurance Information African, Asian, and Inter-American Regional Development Banks

8. International Monetary Fund 1944 orderly and fixed currency exchange currency convertibility balance-of-payments equilibria Loans to cover BOP deficits Cooperation with World Bank and G7

9. Other International Organizations Organization of Petroleum Exporting Countries (OPEC) Organization for Economic Cooperation and Development (OECD) Bank for International Settlements

10. Importance of International Organizations to Multinationals Information Funding of projects Arbitration of international disputes Insurance expropriation and confiscation currency inconvertibility wars and civil disturbances