In general, liberalization (or liberalisation) refers to a relaxation of previous government

restrictions, usually in areas of social or economic policy. In some contexts this process or
concept is often, but not always, referred to as deregulation.[1] Liberalization of autocratic
regimes may precede democratization (or not, as in the case of the Prague Spring).

In the arena of social policy it may refer to a relaxation of laws restricting for example divorce,
abortion, homosexuality or drugs.

Most often, the term is used to refer to economic liberalization, especially trade liberalization or
capital market liberalization.

Although economic liberalization is often associated with privatization, the two can be quite
separate processes. For example, the European Union has liberalized gas and electricity markets,
instituting a system of competition; but some of the leading European energy companies (such as
EDF and Vattenfall) remain partially or completely in government ownership.

Liberalized and privatized public services may be dominated by just a few big companies
particularly in sectors with high capital costs, or high such as water, gas and electricity. In some
cases they may remain legal monopoly at least for some part of the market (e.g. small
consumers).

Liberalization is one of three focal points (the others being privatization and stabilization) of the
Washington Consensus's trinity strategy for economies in transition. An example of
Liberalization is the "Washington Consensus" which was a set of policies created and used by
Argentina

There is also a concept of hybrid liberalisation as, for instance, in Ghana where cocoa crop can
be sold to a variety of competing private companies, but there is a minimum price for which it
can be sold and all exports are controlled by the state[2].

trade liberalization

Definition

Removal of or reduction in the trade practices that thwart free flow of goods
and services from one nation to another. It includes dismantling of tariff
(such as duties, surcharges, and export subsidies) as well as non-tariff
barriers (such as licensing regulations, quotas, and arbitrary standards).
Economic: Concept that a government should not try to control prices, rents,
and/or wages but instead let open competition and forces of demand and
supply create an equilibrium between them that benefits the vast majority of
citizens. It differs from the doctrine of laissez faire in its acceptance of the
government intervention to control creation and spread of monopolies and in
distribution of public good. Economic liberalism, in general, favors
redistribution of income through taxes and welfare payments.

2. Political: Concept that the preservation of individual liberty and

maximization of freedom of choice should be the primary aim of a
representative government. It stresses that all individuals stand equal before
law (without class privileges) and have only a voluntary contractual
relationship with the government. It defends freedom of speech and press,
freedom of artistic and intellectual expression, freedom of worship, private
property, and use of state resources for the welfare of the individual.

What Does Purchasing Power Parity - PPP Mean?

An economic theory that estimates the amount of adjustment needed on the exchange rate
between countries in order for the exchange to be equivalent to each currency's purchasing
power.

The relative version of PPP is calculated as:

Where:
"S" represents exchange rate of currency 1 to currency 2
"P1" represents the cost of good "x" in currency 1
"P2" represents the cost of good "x" in currency 2

Investopedia explains Purchasing Power Parity - PPP

In other words, the exchange rate adjusts so that an identical good in two different countries has
the same price when expressed in the same currency.

For example, a chocolate bar that sells for C$1.50 in a Canadian city should cost US$1.00 in a
U.S. city when the exchange rate between Canada and the U.S. is 1.50 USD/CDN. (Both
chocolate bars cost US$1.00.)

REGIONAL TRADE BLOCKS

In general terms, regional trade blocks are associations of nations at a governmental level to
promote trade
within the block and defend its members against global competition. Defense against global
competition is
obtained through established tariffs on goods produced by member states, import quotas,
government subsidies,
onerous bureaucratic import processes, and technical and other non-tariff barriers.

Since trade is not an isolated activity, member states within regional blocks also cooperate in
economic, political,
security, climatic, and other issues affecting the region.

In terms of their size and trade value, there are four major trade blocks and a larger number of
blocks of regional
importance.

The four major regional trade blocks are, as follows:

asean

ASEAN (Association of Southeast Asian Nations) Updated 29 March 2010

Established on August 8, 1967, in Bangkok/Thailand.
Member States: Brunei Darussalam, Cambodia, Indonesia, Laos, Malaysia, Myanmar,
Philippines, Singapore, Thailand, and Vietnam.
For a map of the region, click here.

Goals: (1) Accelerate economic growth, social progress and cultural development in the region
and (2) Promote
regional peace and stability and adhere to United Nations Charter.
Important Indicators for 2009: Population approximately 592 million; GDP US$1.492 trillion; and
Total Trade
US$1.536 trillion. (Preliminary figures as at 15 March 2010, ASEAN Website.)
ASEAN Economic Community (AEC): Learn more about ASEAN Leaders' vision to transform
ASEAN into a
single market and production base that is highly competitive and fully integrated into the global
community by
2015.
EU (European Union) Updated 29 March 2010
Founded in 1951 by six neighboring states as the European Coal and Steel Community
(ECSC).
Over time evolved into the European Economic Community, then the European Community
and,
in 1992, was finally transformed into the European Union.
Regional block with the largest number of members states (27). These include Austria, Belgium,

Bulgaria, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece,

EU

Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, Poland, Portugal, Romania,
Slovakia, Slovenia,
Spain, Sweden, The Netherlands, and the United Kingdom.
For a map of the Union, click here.
Goals: Evolved from a regional free-trade association of states into a union of political,
economic and executive
connections.
Population estimated at 501.2 million on 1 January 2010 (Eurostat)
GDP (PPP) estimated at US$15.247 trillion (IMF 2008).
MERCOSUR (Mercado Comun del Cono Sul - Southern Cone Common Market)
Updated 30 March 2010
Official site is available only in Spanish and Portuguese.
Established on 26 March 1991 with the Treaty of Assunción.
Full members include Argentina, Brazil, Paraguay, Uruguay, and Venezuela. Associate
members include Bolivia, Chile, Colombia, Ecuador, and Peru. Associate members have

MERCOSUR
MERCOSUL
access to preferential trade but not to tariff benefits of full members. Mexico, interested in
becoming a member of
the region, has an observer status.
For a map of the region, click here.
Goals: Integration of member states for acceleration of sustained economic development based
on social justice,
environmental protection, and combating poverty.
Population: More than 273 million people (July 2008 est., The CIA World Factbook)
GDP (PPP) of more than US$2.774 trillion (2007 est., The CIA World Factbook).
News: Visit MercoPress – an independent news agency operating from Montevideo, Uruguay,
the
administrative headquarters of Mercosur, that focuses on news from member states.

NAFTA

NAFTA (North American Free Trade Agreement) Updated 31 March 2010

Agreement signed on 1 January 1994.
Members: Canada, Mexico, and the United States of America.
Click here for map of the region.
Goals: Eliminate trade barriers among member states, promote conditions for free trade,
increase investment opportunities, and protect intellectual property rights.

Population of over 444.1 million (July 2008 est.) - third largest world population by region.
GDP (PPP) US$17.0 trillion (NaftaNow 2008 est.)

OPEC
The Organization of the Petroleum Exporting Countries (OPEC)
was founded in Baghdad, Iraq, with the signing of an agreement
in September 1960 by five countries namely Islamic Republic of
Iran, Iraq, Kuwait, Saudi Arabia and Venezuela. They were to
become the Founder Members of the Organizati

Currently, the Organization has a total of 12 Member Countries

OBJECTIVES OF OPEC
The Organization of the Petroleum Exporting Countries(OPEC) was
created in 1960 to unify and protect the interests of oil-producing
countries. OPEC allows oil-producing countries to guarantee their
income by coordinating policies and prices among them. This
unified front was created primarily in response to the efforts of
Western oil companies to drive oil prices do