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Regional trading agreements

There are different types of economic integration across the globe, ranging from free trade agreements , in which participants allow each other’s imports without tariffs or quotas, to common markets , in which participants have a common external trade policy as well as free trade within the group, to full economic unions , in which, in addition to a common market, monetary and fiscal policies are coordinated. Many nations belong both to the World Trade Organization and to regional trading agreements.

The best known of these regional trading agreements is the European Union . In the years after World War II, leaders of several European nations reasoned that if they could tie their economies together more closely, they might be more likely to avoid another devastating war. Their efforts began with a free trade association, evolved into a common market, and then transformed into what is now a full economic union, known as the European Union. The EU, as it is often called, has a number of goals. For example, in the early 2000s it introduced a common currency for Europe, the euro, and phased out most of the former national forms of money like the German mark and the French franc, though a few have retained their own currency. Another key element of the union is to eliminate barriers to the mobility of goods, labor, and capital across Europe.

For the United States, perhaps the best-known regional trading agreement is the North American Free Trade Agreement (NAFTA) . The United States also participates in some less-prominent regional trading agreements, like the Caribbean Basin Initiative, which offers reduced tariffs for imports from these countries, and a free trade agreement with Israel.

The world has seen a flood of regional trading agreements in recent years. About 100 such agreements are now in place. A few of the more prominent ones are listed in [link] . Some are just agreements to continue talking; others set specific goals for reducing tariffs, import quotas, and nontariff barriers. One economist described the current trade treaties as a “spaghetti bowl,” which is what a map with lines connecting all the countries with trade treaties looks like.

There is concern among economists who favor free trade that some of these regional agreements may promise free trade, but actually act as a way for the countries within the regional agreement to try to limit trade from anywhere else. In some cases, the regional trade agreements may even conflict with the broader agreements of the World Trade Organization.

Some regional trade agreements
Trade Agreements Participating Countries
Asia Pacific Economic Cooperation (APEC) Australia, Brunei, Canada, Chile, People’s Republic of China, Hong Kong, China, Indonesia, Japan, Republic of Korea, Malaysia, Mexico, New Zealand, Papua New Guinea, Peru, Philippines, Russia, Singapore, Chinese Taipei, Thailand, United States, Vietnam
European Union (EU) Austria, Belgium, Bulgaria, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, Netherlands, Poland, Portugal, Romania, Slovakia, Slovenia, Spain, Sweden, United Kingdom
North America Free Trade Agreement (NAFTA) Canada, Mexico, United States
Latin American Integration Association (LAIA) Argentina, Bolivia, Brazil, Chile, Columbia, Ecuador, Mexico, Paraguay, Peru, Uruguay, Venezuela
Association of Southeast Asian Nations (ASEAN) Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, Philippines, Singapore, Thailand, Vietnam
Southern African Development Community (SADC) Angola, Botswana, Congo, Lesotho, Malawi, Mauritius, Mozambique, Namibia, Seychelles, South Africa, Swaziland, Tanzania, Zambia, Zimbabwe

Questions & Answers

budget line is downward sloping
Ratna Reply
I don't get your question
Royalranjan
Ratna Gadad can you ask your question again
Mbanwei
In the productikn process what will be the marginal product of the large variable factor used
Nayan Reply
In the production process what will be the marginal product of last variable factor used
Nayan
what is demand
Rasmiranjan Reply
which class u study Rasmi?
dilleswar
In real want for a commodity is said to be demand but in economics only the effective demand is defined as demand. Effective Demand consists of 3 principles,such as (1)Want for a commodity (2) Ability to purchase the commodity (3) Willingness to spend money over the commodity.
Royalranjan
This answer belongs to intermediary economics
Royalranjan
what is demand curve?
Januka Reply
different level of quantity demanded. negative slope or downward sloping due to inverse relationship between price and quantity
ronald
national income
Januka
GDPmp+NFIA=National income
Royalranjan
market price of all the good and services produced inside the territory of the nation in addition to the net factors income from abroad is equal to the national income
Royalranjan
what is NFIA
Hari
NFIA stands for Net factors income from abroad the difference between factors income from abroad and factors invested/send to abroad is said to be the net factors income from abroad,which must be added to GDP to find out the national income.NFIA May be positive or can be negative.
Royalranjan
Any examples for Negative
Hari
in the mixed economy of India,our NFIA Is contentiously going in negative way
Royalranjan
as we are investing a lot in abroad than we are incoming from there
Royalranjan
above 5 page define national income and economic walfare
Januka
if you're keep asking me questions from intermediate level and expecting answer of master level then you are fooling yourself
Royalranjan
A demand curve is a graph or diagram showing how the demand for a commodity or service varies which changes in its price
Mbanwei
A demand curve is a graph or diagram which shows how the demand for a commodity or service varies which changes in its price, quantity and quality.
Brij
A demand curve is a graph or diagram showing how the demand for a commodity or service which change in the commodity
Makubu
what does an individualdemand goodsand services?
Januka Reply
individual can be persons or firms
ronald
@Ronald_pradhan individual can be both household or farm
Royalranjan
define demand function
Januka
equation which shows functional relationship between quantity demanded and factors that affect demand for the goods. price income etc
ronald
demand function formula
Januka
quality of demand is proportional to price of the commodity
Royalranjan
If total utility remains Constant with the compensation of one more unit of a commodity marginal utility must be
Rizwan
Can anyone give me a answer
Rizwan
marginal utility must be zero
Royalranjan
of that extra consumed unit of the commodity
Royalranjan
If Engel curve is negatively sloped the commodity is
Rizwan
what is demand
Rasmiranjan Reply
what do you mean by money market
mahesh
money market deals with short term high quality debt securities that are issued by government and barrowers
Chippala
OK bro
mahesh
the demand for a commodity is it's quantity which consumer are able and willing to buy at various prices during a given period of time.
mahesh
what is economics environmental?
mahesh
the economic factors of such as income, inflation, interest rates, productivity, wealth influence by buyers behaviour of consumers in society
Chippala
What is economic planning
PATRICK
basically an individual or a govt. always wants maximum satisfaction with their limited resources,they have to decide that in which mean they will get the best outcome from the resources without any shortcomings.This is called as Economic planning.
Royalranjan
@Rasmiranjan_sahoo Normally demand for a commodity is said to be demand.But actually in economics an effective demand is said to be demand ,that contains (1)Desire for a commodity (2) Willingness to purchase it/or spending money on it (3) Ability to pay the money value
Royalranjan
@Mahesh_chandra in a economy market is divided into 3 types,such as (1)Goods market (2) factor market (3)Money market/financial market the market in which financial interaction happen between the borrower and the lord is said to be financial market.The lord may be private or govt.
Royalranjan
what is diminishing return to scale?
Pankaj
what are the other variables that affect the demand aand supply of the good and services
sahil Reply
the supply and demand of a commodity is affected by 2 way such as price of the good and non price factor non price factor refer to the income,taste of the consumer,the price of the substitute commodity, climate, population, distribution of wealth and income and the rules and regulations of the gover
Royalranjan
the supply of goods and services to be always price to be declined most important. so consumers purchase low price demanded and consuming highly, high price to demanded and consumed low goods and services
Chippala
can't get what you are saying about
Royalranjan
in the monopolistic competition ,do many firms make identical things or not, or do only one firm sell identical but makes many firm?
prakash Reply
only one firm sells
Patrick
identical product
Patrick
who is economic?
Umesh Reply
it's nt a question u ask ths question what is economic.....
BHARATI
economics is the study of human behaviour in many prospects . And economic also deals with scarcity .
abhinav
economics deals everything in the world
Khagan
Economics is the growing branch of knowledge.
dilleswar
there not particular definition of economics.
dilleswar
whate is micro economic
Anwar Reply
micro is individual demand
Betrisia
study of individual firm or individual sector is micro economics
Khagan
it price theory
Khagan
Micro economics is a indidual discussion economical section. It is another name price theory
Chippala
who is adam smith
Avishek Reply
u dnt knw father of economics
BHARATI
adam smith
Januka
Can a monopoly sell the same product at different prices?
Maria Reply
I HAVE TAKEN admission on BA HONS ECONOMICS BUT I DONT HAVE MATHS .... CAN U TELL ME THE MAJOR PORTIONS OF MATHS CONCEPTS WHICH ARE REQUIRED?
ANDRO Reply
derivatives integrations statistics
BHARATI
WITH THESE I CAN CLEAR THE WHOLE SEMESTERS ?
ANDRO
hmmm
BHARATI
CAN U SUGGEST ME SOME BOOKS FOR IT
ANDRO
welth of nation dascapital
BHARATI
micro macro economic money bnkng
BHARATI
human action so mny bks r thr
BHARATI
in proper infrmtn to find it google
BHARATI
ohk ... from which semester the maths portions will require
ANDRO
3rd nd 4th
BHARATI
Can a monopoly sell the same product at different prices?
Maria
At a point where the slope of short run production function is zero marginal product of variable factor is
Rizwan
how does it actually work
Huda Reply
what ?
abhinav
what is definition of demand ?
Yusuf Reply
desire, willing and ability to pay
akash
commonly demand means desire for a commodity but in economics sense demand refers to desire for a commodity and willingness to pay with backed by ability to pay
Captain
Demand is the quantity of goods and services that a consumer is willing and able to purchase at giving period of time
Patrick

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Source:  OpenStax, Microeconomics. OpenStax CNX. Aug 03, 2014 Download for free at http://legacy.cnx.org/content/col11627/1.10
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