Chapter 9/10/11 Flashcards
What does GDP stand for?
GROSS DOMESTIC PRODUCT
Please describe GDP PER CAPITA in relation to economic development
An increase in the average per capita gross domestic product or gross national income reflects an increase in national production thus leading to economic development.
Where was FREE TRADE AREA established
Established between USA x Canada.
What were the general goals of the market agreements (5) and overall major goal?
Larger markets for members & nonmembers Economies of scale Specialization Mergers/competitiveness Higher standard of living Major goal: economic gain for all
What were the CONDITIONS needed for success in market agreements between countries? In order to be successful, what is needed??
Geographic proximity Similar economic system and strength Similar political systems Similar social and cultural values Members with diverse products and raw materials Need complementary economies
Describe when NAFTA came to be, what were results, and what happened in 2008.
When NAFTA was ratified and became effective in 1994, it became a single market of 360 million people with a $6 trillion GNP
NAFTA required the three countries to remove all tariffs and barriers to trade over 15 years
In 2008, all tariff barriers were officially dropped
What is NAFTA?
United States x Canada = largest bilateral trade agreement…. This means that they were each other’s largest trading partner
Customs Union
b
What is economic development?
rapid economic growth
increases in consumer demand
What was FREE TRADE AREA designed to do, eliminate?
Designed to eliminate all trade barriers between the two countries. No economic or political union, just ELIMINATES tariffs and other trade barriers.
What was the purpose of NAFTA?
The purpose was to:
generate income and employment gains
Enhance global competitiveness of NAFTA firms
What does NAFTA stand for?
North American Free Trade Agreement
What did the United States and Canada establish to eliminate all trade barriers between the countries?
CTFA
What is the purpose of Rule of Origin?
NAFTA reduces tariffs only for goods made in North America so rules of origin prevents free riders from benefiting through minor processing or transshipment of NON-NAFTA
What were the companies involved in Mercosur?
Argentina Brazil Chile Bolivia Paraguay Uruguay
What’s another name for Mercosur?
Southern Cone Free Trade Area
What is Mercosur?
Mercosur has become the most influential and successful free trade area in South America.
What is Market Access?
Within 10 years of implementation, all tariffs will be eliminated on North American industrial products traded among Canada, Mexico, and the United States. All trade between Canada, Mexico, and the United States. All trade between Canada and the United States not already duty free will be duty free as provided for in CFTA. Mexico will immediately eliminate tariffs on nearly 50 percent of all industrial goods imported from the United States and remaining tariffs will be phased out entirely within 15 years.
What are some countries in the ASEAN?
Brunei Indonesia Laos Malaysia Myanmar Phillippines Singapore Thailand Vietnam
What does ASEAN stand for?
Association of Southeast Asian Nations
What are the 9 key provisions of NAFTA?
Market Access Nontariff Barriers Rules of Origin Customs Administration Investment Services Intellectual Property Government Procurement Standards
