Published on April 15, 2009
TOPICS : TOPICS CUSTOMS UNION COMMON MARKET FREE TRADE AREA CUSTOMS UNION : CUSTOMS UNION INDIA MALAYSIA CHINA SRILANKA INTRODUCTION : INTRODUCTION THE CUSTOM UNION WOULD INCLUDE INDIA, CHINA, MALAYSIA AND SRILANKA. ALL FOUR COUNTRIES ARE ASIA’S EMERGING ECONOMIC MARKETS AND HAVE THE POTENTIAL TO FORM A POWERFUL ECONOMIC BLOC. Raw material To Manufactured goods : Raw material To Manufactured goods DIAGRAM:- INDIA AND CHINA MALAYSIA CRUDE OIL NATURAL GAS SRILANKA METAL AND STEEL LEATHER AND RUBBER ABOUT… : ABOUT… The countries indulging in a custom union have a free trade area with common external tariffs. Here china and India being amongst the biggest producers of goods but lack in natural resources. Srilanka and Malaysia have plenty of natural resources but they lack in factors of production. ADVANTAGES : ADVANTAGES MAXIMUM UTILISATION OF NATURAL RESOURCES. INCREASE IN EMPLOYMENT. INCREASE IN TRADE. INCREASE IN GDP. OVERALL ECONOMIC PROSPERITY. COMMON MARKET : COMMON MARKET Angola Tanzania Zimbabwe Namibia South Africa INTRODUCTION : INTRODUCTION All 5 countries mentioned here, i.e., Angola, Tanzania, Zimbabwe, Namibia, South Africa southern African developing countries. Each country has a developing economy. ABOUT…. Common market : ABOUT…. Common market It is a customs union with common policies on product regulation. Makes freedom of movement of all the 3 factors of production (land, capital and labour) and services between the members as easy as within them. ADVANTAGES : ADVANTAGES INCREASE IN EMPLOYMENT OPPORTUNITIES. INCREASE IN TRADE OPPORTUNITIES. LEAD TO HEALTH AND EDUCATION SECURITY. OVERALL GROWTH OF GDP. FREE TRADE AREA : FREE TRADE AREA UNITED STATES OF AMERICA NEW ZEALAND INTRODUTION : INTRODUTION New Zealand and the United States are old friends. NEW ZEALAND IS A VERY SMALL ECONOMY AS COMPARED TO U.S. YET IT HAS ENOUGH SCOPE. BOTH COUNTRIES SHARE GOOD WORKING RELATIONS AND SHARE AN EXCELLENT SYSTEM OF COMMUNICATION. BOTH COUNTRIES WILL BE BENEFICIAL. ADVANTAGES TO NEW ZEALAND : ADVANTAGES TO NEW ZEALAND IT’LL SUSTANTIALLY INCREASE THE EXPORT OF ITS WELL RENOWNED DAIRY PRODUCTS. MORE TRADE MEANS MORE EMPLOYMENT. ADVANTAGES TO U.S. : ADVANTAGES TO U.S. US merchandise exports to New Zealand would rise by about 25% and virtually every US sector would benefit. NEW ZEALAND HAS FTA AGREEMENT WITH AUSTRALIA FROM THE PAST 20 YEARS. IT’LL HELP MERGE U.S. WITH AUSTRALIA FUTURE GIVING THEM LARGER MARKET SHARE.