International Marketing Chapter 3

GATT (General Agreement on Tariffs and Trade) it'self had no enforcement power, and the losing party in a dispute was entitled to ignore the ruling.

The WTO promotes free trade on a global basis.

It is customary for countries to notify the WTO when they enter into preferential trade agreements.

The ultimate goal of a free trade agreement is to have standardized duties on goods that cross borders between the partners.

A free trade area represents the most fully developed form of preferential trade agreement among nations.

About 50% of global trade takes place among nations linked by free trade areas.

In October 2011, the United States Congress finally ratified the long-delayed free trade areas with South Korea, Panama, and Colombia.

A Customs Union represents the most fully developed form of preferential trade agreement among nations.

In addition to eliminating internal barriers to trade, members of a customs union agree to the establishment of common external tariffs.

In a Common Market there are no internal barriers to trade, and it allows for free movement of factors of production such as labor and capital.

Under Economic Union, a doctor or lawyer qualified in one country can practice in another member country.

Economic Union stands at the top of the pyramid in the hierarchy of Preferential Trade Agreements.

In spite of NAFTA creating a free trade area, Mexican avocado growers can only ship their fruit to the United States during the winter months, and only to states in the northeast subject to a quota of $30 million worth of avocados per year.

NAFTA ensures that any product for sale in the U.S., Mexico, and Canada bearing a certificate of origin qualifies for tariff reduction.

Despite trade agreements, attempts to achieve integration in Central America have been described as uncoordinated, inefficient, and costly. There are still tariffs on imports of sugar, coffee, and alcoholic beverages.

The objective of the EU member countries is to harmonize national laws and regulations so that goods, services, people, and eventually money can flow freely across national boundaries.

In May 1998, eleven charter members of the eurozone were chosen, which included Greece.

Movements such as "the Arab Spring" have forced some of the regional leaders to make economic and political concessions.

The six countries in the Gulf Cooperation Council (GCC) hold about 45% of the world's known oil reserves, but production is only about 18% of world oil output.

Saudi Arabia, a major oil-producing nation, posted current-account deficits since they must import most of the goods and services.