ECONOMIC INTEGRATION

GROUP NO 7
 HEADLINES…

India humbles Bangladesh in first test

Chavan makes hurried U-turn after sonia rap

Kotla banned till the end of 2010

William sisters & Federer moved to third round

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 WHAT IS ECONOMIC INTEGRATION ?

ECONOMIC INTEGRATION IS AN
ECONOMIC ALLIANCE OR NETWORK-
BASED ON CO-OPERATION,
COLLABERATION, FLEXIBILITY,
SHARED INTERESTS, OBJECTIVES, &
COMMITTENTS BETWEEN TWO
COUNTRIES ON AN INTEGRATING ,
ON GOING PROCESS

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 FORM OF ECONOMIC INTEGRATION

 PREFERENTIAL TRADE AGREEMENT

 FREE TRADE AREA
 CUSTOM UNIONS
 COMMON MARKETS
 ECONOMIC UNIONS

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 THEORY OF COMPARATIVE ADVANTAGE

DIFFERENCE IN PRICES ARE THE

BASIC CAUSE OF TRADE &
INTERANATIONAL DIFFERENCES
IN COSTS. SOME GOODS MAY BE
CHEAPER TO PRODUCE AT HOME &
WILL BE EXPORTED TO OTHER
COUNTRIES. SOME GOODS MAY BE
CHEAPER TO PRODUCE ABROAD &
WILL BE IMPORTED FROM THE
COUNTRY.

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 IMPORTANCE TO INTERNATIONAL BUSINESS

 HIGHER STANDARD OF LIVING

 WIDER MARKET
 REDUCED RISK
 SOCIO-ECONOMIC WELFARE
 LARGE SCALE ECONOMIES
 POTENTIAL MARKET
 CHALLENGE TO DOMESTIC BUSINESS
 DIVISION OF LABOUR & SPECIALIZATION
 ECONOMIC GROWTH

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 EXAMPLE OF ECONOMIC INTEGRATION

 EURPOPEAN UNION
 NORTH AMERICAN FREE TRADE AGREEMENT
 ASSCIATION OF SOUTH EAST ASIAN NATIONS

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 EUROPEAN UNION

THE LARGEST & MOST

COMPREHENSIVE OF
THE REGIONAL
ECONOMIC GROUP IS
THE EU.

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 NORTH AMERICAN FREE TRADE AGREEMENT

NAFTA INCLUDES CANADA,

U.S, & MEXICO WENT
INTO EFFECT ON 1ST
JANUARY, 1994.

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 ASSOCIATION OF SOUTH EAST ASIAN
NATIONS

IT WAS FORMED BY 3

NATIONS CHINA, JAPAN,
KOREA.
ASEAN IS ONLY ECONOMIC
GROUP WHO’S POPULATION IS
MORE THAN EU, NAFTA.

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 SOUTH ASIAN ASSOCIATION FOR
REGIONAL COOPERATION

 HISTORY
 SECRETARIAT
 CRITICISM
 POLITICAL ISSUES
 FREE TRADE AGREEMENT
 DHAKA 2005 SUMMIT

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 SECY OF FINANCE MINSTRY ON THE ISSUE…..

RECORDED EARLIER

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ROLE OF INTERNATIONAL ORGANISATIONS

INTENATIONAL MONETARY FUND

WORLD TRADE ORGANISATION

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 INTERNATIONAL MONETARY FUND

 Enhancing IMF Lending Facilities.

 Strengthening The Monitoring Of Global, Regional, And Country
Economies.
 Helping Resolve Global Economic Imbalances
 Analyzing Capital Market Developments
 Working To Cut Poverty.
 Improving Imf Governance
 Greater Accountability And Transparency.

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 WORLD TRADE ORGANISATION

Is it a bird, is it a plane? 
Above all, it’s a negotiating forum
It’s a set of rules …      
And it helps to settle disputes …      

153  members on 23 July 2008 (with

dates of membership).

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 SOURCES

INTERNATIONAL BUSINESS –
P.K.BANDGAR
INTERNATIONAL BUSINESS –
O.P.AGARWAL
IMF, WTO, NAFTA, SAARC, EU
WEBSITE’S

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