TOPICS

 CUSTOMS UNION

 COMMON MARKET

 FREE TRADE AREA

CUSTOMS UNION
INDIA

MALAYSIA

CHINA

SRILANKA
 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
DIAGRAM:-
MALAYSIA
•CRUDE OIL
INDIA
•NATURAL GAS

SRILANKA AND
•METAL AND
STEEL
CHINA
•LEATHER AND
RUBBER
 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
 MAXIMUM UTILISATION OF NATURAL
RESOURCES.
 INCREASE IN EMPLOYMENT.
 INCREASE IN TRADE.
 INCREASE IN GDP.
 OVERALL ECONOMIC PROSPERITY.
COMMON MARKET
Angola

Tanzania

Zimbabwe

Namibia

South Africa
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
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

INCREASE IN EMPLOYMENT
OPPORTUNITIES.
INCREASE IN TRADE
OPPORTUNITIES.
LEAD TO HEALTH AND EDUCATION
SECURITY.
OVERALL GROWTH OF GDP.
FREE TRADE AREA

UNITED STATES OF AMERICA

NEW ZEALAND
 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
 IT’LL
SUSTANTIALLY INCREASE THE
EXPORT OF ITS WELL RENOWNED DAIRY
PRODUCTS.

 MORE TRADE MEANS MORE EMPLOYMENT.

 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.