1. 10- 0 © The McGraw-Hill Companies, Inc., 1999 Irwin/McGraw-Hill Chapter 10 Multinational Market Regions and Market Groups

2. 10- 1 © The McGraw-Hill Companies, Inc., 1999 Irwin/McGraw-Hill Successful Economic Union Requirements Economic Compatibility Political Compatibility Geographic Proximity Cultural Compatibility Weakness in some must be balanced by strengths in others

3. 10- 2 © The McGraw-Hill Companies, Inc., 1999 Irwin/McGraw-Hill Patterns of Multinational Cooperation Regional Cooperation Groups Free Trade Area Customs Union Common Market Political Union

4. 10- 3 © The McGraw-Hill Companies, Inc., 1999 Irwin/McGraw-Hill Belgium ItalyIcelandNorway DenmarkLuxembourg Liechtenstein Switzerland FranceThe Netherlands GermanyPortugal GreeceSpain IrelandUnited Kingdom EC Countries andEU Countries and AustriaNorwayIceland FinlandSweden In Membership NegotiationsSecond Tier-Awaiting Evaluation CypressHungaryBulgariaRomania Czech RepublicPolandLatviaSlovakia EstoniaSloveniaLithuania European Trade Areas - 1997* European Community (EC)European Free Trade Area (EFTA) European Unity (EU) European Economic Area (EEA) * Visit http://europa.eu.int/ (select Abc and then Agenda 2000 for details on requirements of accession).

5. 10- 4 © The McGraw-Hill Companies, Inc., 1999 Irwin/McGraw-Hill The European Economic Area: EU, EFTA, and Associates ICELAND NORWAY SWEDEN FINLAND DENMARK IRELAND UNITED KINGDOM BELGIUM Netherlands GERMANY FRANCE SPAIN Portugal Switz. ITALY Austria TURKEY GREECE ATLANTIC OCEAN MALTA EUEU EFTA EC Associated

6. 10- 5 © The McGraw-Hill Companies, Inc., 1999 Irwin/McGraw-Hill EC Institutions European Commission Council of Ministries European Parliament European Court of Justice

7. 10- 6 © The McGraw-Hill Companies, Inc., 1999 Irwin/McGraw-Hill 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, August 27, 1997; and International Marketing Data and Statistics, 1997 (London: Euromonitor, 1997).

8. 10- 7 © The McGraw-Hill Companies, Inc., 1999 Irwin/McGraw-Hill Treaty of Amsterdam - Objectives To place employment and citizens’ rights at the heart of the Union. To sweep away the last remaining obstacles to freedom of movement and to strengthen security. To give Europe a stronger voice in world affairs. To make the Union’s institutional structure more efficient with a view to enlarging the Union. SOURCES: details con be found in “The Four Major Objectives of the New Treaty for Europe.” at http://europa.eu.int

9. 10- 8 © The McGraw-Hill Companies, Inc., 1999 Irwin/McGraw-Hill Level of Involvement with the EC 1. Firms based in Europe with well-established manufacturing and distribution operations in several European countries. 2.Firms with operations in a single EC country. 3.Firms that export manufactured goods to the EC from an offshore location. 4.Firms that have not actively exported to EC countries.

10. 10- 9 © The McGraw-Hill Companies, Inc., 1999 Irwin/McGraw-Hill Commonwealth of Independent States RUSSIAN REPUBLIC ARCTIC OCEAN Twelve republics, each with their own legislatures Twenty smaller “autonomous republic” or homelands for various ethnic groups KAZAKHSTAN BELARUS UKRAINE MOLDOVA GEORGIA ARMENIA AZERBAIJAN TURKMENISTAN UZBEKISTAN TAJIKISTAN KYRGYZSTAN

11. 10- 10 © The McGraw-Hill Companies, Inc., 1999 Irwin/McGraw-Hill Central European Free-Trade Area (CEFTA) Poland Hungary Slovakia Czech Republic Slovenia Romania

12. 10- 11 © The McGraw-Hill Companies, Inc., 1999 Irwin/McGraw-Hill North American Free-Trade Area (NAFTA) Canada United States Mexico

13. 10- 12 © The McGraw-Hill Companies, Inc., 1999 Irwin/McGraw-Hill North American Free-Trade Area Provisions Market Access Non Tariff Barriers Rules of Origin Customs Administration Investment Services Intellectual Property Standards Government Procurement

14. 10- 13 © The McGraw-Hill Companies, Inc., 1999 Irwin/McGraw-Hill Southern Cone Free Trade Area (Mercosur) Argentina Bolivia Brazil Chile Paraguay Uruguay

15. 10- 14 © The McGraw-Hill Companies, Inc., 1999 Irwin/McGraw-Hill Latin American Integration Association (LAIA) Argentina Mexico Bolivia Paraguay Brazil Peru Chile Uruguay Columbia Venezuela Ecuador

16. 10- 15 © The McGraw-Hill Companies, Inc., 1999 Irwin/McGraw-Hill Andean Common Market (ANCOM) Bolivia Columbia Ecuador Peru Venezuela

17. 10- 16 © The McGraw-Hill Companies, Inc., 1999 Irwin/McGraw-Hill Caribbean Community and Common Market (CARICOM) Antigua Montserrat Barbuda St. Kitts- Nevis Belize Anguilla Dominica St. Lucia Grenada St. Vincent Guyana Trinidad- Tobago Jamaica

18. 10- 17 © The McGraw-Hill Companies, Inc., 1999 Irwin/McGraw-Hill Association of Southeast Asian Nations (ASEAN) Brunei Philippines Indonesia Singapore Laos Thailand Malaysia Vietnam Myanmar

19. 10- 18 © The McGraw-Hill Companies, Inc., 1999 Irwin/McGraw-Hill Comparison of Exports Among Members of APEC and the EC APEC2,235732,869770,09722,952 America’s*406306,486311,0857,989 Asia1812399,455419,9016,447 Oceania2226,92834,111343 EC374515,915628,6068,180 Population, 1989Exports, 1990Exports, 1995GNP, 1996 (millions)(U.S. $ millions)(U.S. $ millions)(U.S. $ billions) * includes: U.S., Canada, Mexico, and Chile. 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).

20. 10- 19 © The McGraw-Hill Companies, Inc., 1999 Irwin/McGraw-Hill Economic Community of West African States (ECOWAS) Benin Liberia Burkina Faso Mali Cape Verde Mauritania Gambia Niger Ghana Nigeria Guinea Senegal Guinea-Bissau Sierra-Leone Ivory Coast Togo

21. 10- 20 © The McGraw-Hill Companies, Inc., 1999 Irwin/McGraw-Hill Southern African Development Community (SADC) Botswana South Africa Lesotho Swaziland Namibia Tanzania Malawi Zambia Mauritius Zimbabwe Mozambique

22. 10- 21 © The McGraw-Hill Companies, Inc., 1999 Irwin/McGraw-Hill Arab Common Market Iraq Kuwait Jordan Syria Egypt

23. 10- 22 © The McGraw-Hill Companies, Inc., 1999 Irwin/McGraw-Hill Economic Cooperation Organization (ECO) Pakistan Iran Turkey Azerbaijan Turkmenistan Uzbekistan

24. 10- 23 © The McGraw-Hill Companies, Inc., 1999 Irwin/McGraw-Hill 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)