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EUROPE, AFRICA,AND THE MIDDLE EAST - Coggle Diagram
EUROPE, AFRICA,AND THE MIDDLE EAST
La Raison d'Etre
Economic Factors
Market Enlargement
Preferential tariff treatment for participating members
Common Barriers against outsiders
Stimulate internal economic development
Political Factors
Amenability among countries
Economic Considerations
State Sovereignty
Geographic and Temporal Proximity
Differences across time zones
Trade tends to travel more easily
Issues of immigatrion
Transportation network
Cultural Factors
Eases the shock of economic cooperation
Language
Trade agreements
Global Markets and Multinational Market Groups
Africa
A great deal of activity but little progress
ECOWAS, SADC, EAC, are the three most active regional cooperative groups
Industrial base that will help propel the country into rapid economic growth
Middle East
ECO has the goal to develop its infraestructure to pave the way for regional cooperation
Creation of a common market composed of Islamic countries
Agreement to reduce tariff and nontariff barriers to boost trade
Europe
European Union
European Integration
Eastern Europe and the Baltic States
The commonwealth of Independent States
Implications of Market Integration
Strategic Implications
Opportunities
Economic integration creates large mass markets
Coordinated programs to foster economic growth as part of cooperative efforts
Market Barriers
Protect businesses that operate within borders
Give advantage to companies within the market in their dealings with other coutnries of the market group
Market Metrics
Fundamental metrics that reflect size and character of markets
Widest disparity in standards of living
Infrastructures
Consumer purchases
Latitude
Marketing Mix Implications
Reflect anticipated market changes in the single European Market
Uniform pricing policies
Reduce number of brands
Trade among close neighbors is always important
Local integration
Patterns of Multinational Cooperation
Regional Cooperation Groups
The Regional cooperation for developemnt
Governments agree to participate in the development of basic industries
Shared construction costs
Free Trade Area
Requires cooperation and integration
Reduce or eliminate customs duties and non tariff trade barriers
Mass market without barriers
Customs Union
represents the next stage in economic cooperation
Enjoy's the free trade areas
Logical state of cooperation
Common Market
Eliminates tariffs and restrictions on international trade
Adopts a set of common external tariffs
Removes restrictions on the free flow of capital and labor
A unified economy
Lacks political unity
Political Union
The most fully integrated form of regional cooperation
COMECON
A centrally controlled group of countries organized by the Soviet Union.
Commonwealth of nations
Provides for the loosest possible relationship that can be classified as economic integration.