03 Fragen

two or more countries setting up deals to:

1) Free Trade Area

• simplest

• eliminate formal barriers to trade

• maintain independent international trade policy

• USMCA

2) Custom Union

• harmonize trade policies towards nonmember countries

• MERCOSUR (argentina, brazil, paraguay, uruguay)

3) Common Market

• (single market)

• reduce/remove trade barriers

• common external barriers are established

4) Economic union

• common fiscal and monetary policies

• identical

  • tax

  • exchange rate

  • free convert of money

  • free movement of capital

• EU -€

5) Political Union

• Remains ideal

• perfect unification

• reduce tariffs

• reduce restrictions

• better cross-border flow

  • products

  • services

  • capital

Advantages:

• easier to negotiate than worldwide

—

EU= Common Market

Challenges: people moving due to wages etc

Also has features from economic unions:

• market access - barriers, Tariffs

• Common market: cross national movement of production etc

• Trade rules: easy transportation and logistics

• Standards and harmonization: technical standards

€ since 2002

• Geht rid oft Financial Risk - currency

• Easy cross border trade

• Eliminate exchange risk

  —> investment in whole eu

• Europe as a single market

• European Central Bank empowered

• zero interest policy

• prices of goods relatively stable

• Only economic Block with a joint currency

USMCA

Us, Mexico, Canada

Successor of former NAFTA

01.06.2020

• Zero Tarifs

• Digital Trade

• Government contracts by firms

• Trade rules and procedures

Southern common market

Argentina, Brazil, Paraguay, Uruguay

• 80% of South American GDP

• 1991

• Free movement of products and services

• Common external Tarifs + trade policy

Regional Comprehensive Economic Partnership

Southwest Asian nations

• 15 counties (biggest: China!)

• - also smaller Countdown

• 2.3 billion people - 30% of world population

• 30% of worlds GDP

• 5 countries also members of G20

  Australia, Indonesia, Japan, South Korea

• Pacific nations

  RCEP, ASEAN, CPTPP

Create More Jobs

Create More value for the Company

Economic Protecting:

• domestic economy & jobs

• Infant industries

• Revenue generation

Political protecting:

• national economy

• National security

• Firm and industries

Social objectives

• domestic job

• Culture and identity

Instruments:

• takeover: confiscation, expropriation, nationalization

• Sanctions: tariffs, trade barriers, import duties, export quotas

• Embargo’s

• Boycotts

• Terrorism, wars

• Import quotas

• Local Content guidelines

Examples: political:

• us steel and Aluminium Tariffs

  2018: 25% steel, 10% Aluminium Import

• China - US Trade war:

  2018: tariffs for china: 50 billion $ - china angry - war of tariffs

Examples: current embargo’s:

us against Iran:

• near total embargo

• Begin 1979 revolution

• Iranian nuclear power

us vs North Korea

• human rights abuse in NK

• ban on exports of goods

• stop other countries industry

• make trade for other country more difficult

• Tarriffs

• - in Trade war

• - different Interests

• - Trump America First - Trade deficit- germany 1 of the targets

• - counter actions

• Embargo

• - different economic goals + DIFFERENT POLITICAL SYSTEM

• POLITICAL OR SOCIAL DISLIKES

• Russia vs Germany etc

• Against Iran - political System, nuclear Weapons, Human Rights, protests

• Full Embargo: Every good - today undenkbar

collaboration between

1) unions

2) employers

3) Government

• shared economic and social goals

• win-win outcome for all parties

Singapore:

• MOM Ministry of Manpower

• NTUC National Trades Union Congress

• SNEF Singapore National Employers Federation

Goals:

• Upgrade capabilities of employers and workers

• Uplift and suppoert vulnerable and old workers

• workplace fairness