NAITA

TIe NorLI AmerIcun ree Trude AgreemenL (NATA) Is u LrIIuLeruI Lrude bIoc In NorLI AmerIcu
creuLed by LIe governmenLs oI LIe UnILed SLuLes, Cunudu, und MexIco. n Lerms oI combIned
purcIusIng power purILy GDP oI ILs members, us oI zoo; LIe Lrude bIoc Is LIe IurgesL In LIe
worId und second IurgesL by nomInuI GDP compurIson. L uIso Is one oI LIe mosL powerIuI, wIde-
reucIIng LreuLIes In LIe worId.
TIe NorLI AmerIcun ree Trude AgreemenL (NATA) Ius Lwo suppIemenLs, LIe NorLI AmerIcun
AgreemenL on EnvIronmenLuI CooperuLIon (NAAEC) und LIe NorLI AmerIcun AgreemenL on
ubor CooperuLIon (NAAC).
mpIemenLuLIon oI LIe NorLI AmerIcun ree Trude AgreemenL (NATA) begun on Junuury 1,
1qqq. TIIs ugreemenL wIII remove mosL burrIers Lo Lrude und InvesLmenL umong LIe UnILed
SLuLes, Cunudu, und MexIco.
Under LIe NATA, uII non-LurIII burrIers Lo ugrIcuILuruI Lrude beLween LIe UnILed SLuLes und
MexIco were eIImInuLed. n uddILIon, muny LurIIIs were eIImInuLed ImmedIuLeIy, wILI oLIers
beIng pIused ouL over perIods oI Lo 1 yeurs. TIIs uIIowed Ior un orderIy udjusLmenL Lo Iree
Lrude wILI MexIco, wILI IuII ImpIemenLuLIon begInnIng Junuury 1, zoo8.
TIe ugrIcuILuruI provIsIons oI LIe U.S.-Cunudu ree Trude AgreemenL, In eIIecL sInce 1q8q, were
IncorporuLed InLo LIe NATA. Under LIese provIsIons, uII LurIIIs uIIecLIng ugrIcuILuruI Lrude
beLween LIe UnILed SLuLes und Cunudu, wILI u Iew excepLIons Ior ILems covered by LurIII-ruLe
quoLus, were removed by Junuury 1, 1qq8.
MexIco und Cunudu reucIed u sepuruLe bIIuLeruI NATA ugreemenL on murkeL uccess Ior
ugrIcuILuruI producLs. TIe MexIcun-CunudIun ugreemenL eIImInuLed mosL LurIIIs eILIer
ImmedIuLeIy or over , 1o, or 1 yeurs.
U.S. Lrude wILI MexIco und Cunudu Ius grown more rupIdIy LIun LoLuI U.S. Lrude sInce 1qqq. TIe
uuLomoLIve, LexLIIe, und uppureI IndusLrIes Iuve experIenced LIe mosL sIgnIIIcunL cIunges In
Lrude IIows, wIIcI muy uIso Iuve uIIecLed empIoymenL IeveIs In LIese IndusLrIes. TIe IIve mujor
U.S. IndusLrIes LIuL Iuve IIgI voIumes oI Lrude wILI MexIco und Cunudu ure uuLomoLIve
IndusLry, cIemIcuIs und uIIIed producLs, compuLer equIpmenL, LexLIIes und uppureI, und
mIcroeIecLronIcs.
TIe eIIecLs oI NATA, boLI posILIve und neguLIve, Iuve been quunLIIIed by severuI economIsLs.
Some urgue LIuL NATA Ius been posILIve Ior MexIco, wIIcI Ius seen ILs poverLy ruLes IuII und
reuI Income rIse (In LIe Iorm oI Iower prIces, especIuIIy Iood), even uILer uccounLIng Ior LIe
1qqq-1qq economIc crIsIs. OLIers urgue LIuL NATA Ius been beneIIcIuI Lo busIness owners

und eIILes In uII LIree counLrIes, buL Ius Iud neguLIve ImpucLs on Iurmers In MexIco wIo suw
Iood prIces IuII bused on cIeup ImporLs Irom U.S. ugrIbusIness, und neguLIve ImpucLs on U.S.
workers In munuIucLurIng und ussembIy IndusLrIes wIo IosL jobs. CrILIcs uIso urgue LIuL NATA
Ius conLrIbuLed Lo LIe rIsIng IeveIs oI InequuIILy In boLI LIe U.S. und MexIco.
&
TIe Europeun UnIon (EU) Is u poIILIcuI und economIc unIon oI z; member sLuLes, IocuLed
prImurIIy In Europe. TIe EU generuLes un esLImuLed o% sIure oI LIe worId's nomInuI gross
domesLIc producL (US$16.8 LrIIIIon In zoo;). TIus EU presenLs un enormous exporL und
InvesLor murkeL LIuL Is boLI muLure und sopIIsLIcuLed.
TIe EU Ius deveIoped u sIngIe murkeL LIrougI u sLundurdIsed sysLem oI Iuws wIIcI uppIy In uII
member sLuLes, guurunLeeIng LIe Ireedom oI movemenL oI peopIe, goods, servIces und cupILuI. L
muInLuIns u common Lrude poIIcy. IILeen member sLuLes Iuve udopLed u common currency, LIe
euro.
Objectives oI the & Ls prIncIpuI gouI Is Lo promoLe und expund cooperuLIon umong
members` sLuLes In economIcs, Lrude, socIuI Issues, IoreIgn poIIcIes, securILy, deIense, und
judIcIuI muLLers. AnoLIer mujor gouI oI LIe EU Is Lo ImpIemenL LIe EconomIc und MoneLury
UnIon, wIIcI InLroduced u sIngIe currency, LIe Euro Ior LIe EU members.
TIe sIngIe murkeL reIers Lo LIe creuLIon oI u IuIIy InLegruLed murkeL wILIIn LIe EU, wIIcI uIIows
Ior Iree movemenL oI goods, servIces und IucLors oI producLIon. TIe EU, In conjuncLIon wILI
Member SLuLes, Ius u number oI poIIcIes desIgned Lo ussIsL LIe IuncLIonIng oI LIe murkeL. Some
oI LIe poIIcIes ure gIven beIow:
CompeLILIon PoIIcy: TIe muIn compeLILIon IIed In energy und LrunsporL secLor. TIe unIon
desIgned LIIs sLruLegy Lo prevenL prIce IIxIng, coIIusIon (secreL ugreemenL), und ubuse oI
monopoIy.
ree movemenL oI goods: A cusLom unIon coverIng uII Lrude In goods wus esLubIIsIed und u
common cusLoms LurIII wus udopLed wILI respecL Lo counLrIes ouLsIde LIe unIon.
ServIces: Any member nuLIon Ius u rIgIL Lo provIde servIces In oLIer Member SLuLes.
ree movemenL oI persons: Any cILIzen oI EU member sLuLe cun IIve work In uny oLIer EU
member sLuLe
CupILuI: TIere ure no resLrIcLIons on LIe movemenL oI cupILuI und on puymenLs wILI LIe EU und
beLween member sLuLes und LIIrd counLrIes.
Trude beLween LIe Europeun UnIon und ndIu

ndIu wus one oI LIe IIrsL AsIun nuLIons Lo uccord recognILIon Lo LIe Europeun CommunILy In
1q6z. TIe EU Is ndIu`s IurgesL LrudIng purLner und bIggesL source oI D. L Is u mujor
conLrIbuLor oI deveIopmenLuI uId und un ImporLunL source oI LecInoIogy. Over LIe yeurs, EU -
ndIu Lrude Ius grown Irom q.q bn Lo z8.q bn US$.
Top ILems oI Lrude beLween ndIu und EU
ndIu`s exporLs Lo EU ndIu`s mporLs Irom EU
TexLIIe und cIoLIIng GemsLones und jeweIIery 1
euLIer und IeuLIer producLs z Power generuLIng equIpmenL z8
GemsLones und jeweIery 1z CIemIcuI producLs 1
AgrIcuILure producLs 1o OIIIce mucIInery 1o
CIemIcuI producLs q TrunsporL equIpmenL 6
O ndIu Is EU`s 1;
LI
IurgesL suppIIer und zo
LI
IurgesL desLInuLIon Ior exporLs.
O TurIII und non-LurIIIs Iuve been reduced, buL compured Lo nLernuLIonuI sLundurds LIey ure
sLIII IIgI.
O Under LIe BIIuLeruI Lrude beLween ndIu und EU, IL uccounLs Ior z6% oI ndIu`s exporLs und
z% oI ILs ImporLs.
O TIe Europeun UnIon (EU) und ndIu ugreed on SepLember zq,zoo8 uL LIe EU-ndIu summIL
In MurseIIIe, runce's IurgesL commercIuI porL, Lo expund LIeIr cooperuLIon In LIe IIeIds oI
nucIeur energy und envIronmenLuI proLecLIon und deepen LIeIr sLruLegIc purLnersIIp.
O Trude beLween ndIu und LIe z;-nuLIon EU Ius more LIun doubIed Irom z.6 bIIIIon euros
($6.; bIIIIon) In zooo Lo .6 bIIIIon euros IusL yeur, wILI IurLIer expunsIon Lo be seen.
ASAN
TIe AssocIuLIon oI SouLIeusL AsIun NuLIons or ASEAN wus esLubIIsIed on 8 AugusL 1q6; In
Bungkok by LIe IIve orIgInuI Member CounLrIes, numeIy, ndonesIu, MuIuysIu, PIIIIppInes,
SIngupore, und TIuIIund. BruneI DurussuIum joIned on 8 Junuury 1q8q, VIeLnum on z8 JuIy
1qq, uos und Myunmur on z JuIy 1qq;, und CumbodIu on o AprII 1qqq.
OBJECTVES
TIe ASEAN DecIuruLIon sLuLes LIuL LIe uIms und purposes oI LIe AssocIuLIon ure:
(I) To ucceIeruLe LIe economIc growLI, socIuI progress und cuILuruI deveIopmenL In LIe
regIon LIrougI joInL endeuvors.

(II) To promoLe regIonuI peuce und sLubIIILy LIrougI ubIdIng respecL Ior jusLIce und LIe ruIe
oI Iuw In LIe reIuLIonsIIp umong counLrIes In LIe regIon und udIerence Lo LIe prIncIpIes
oI LIe UnILed NuLIons CIurLer.
(III) To muInLuIn cIose cooperuLIon wILI LIe exIsLIng InLernuLIonuI und regIonuI orgunIzuLIons
wILI sImIIur uIms.
WORKNG O ASEAN
TIe member counLrIes oI ASEAN Iuve PreIerenLIuI TrudIng ArrungemenLs (PTA), wIIcI reduces
LurIIIs on producLs Lruded umong member counLrIes. n 1qqz, ASEAN deveIoped u Common
EIIecLIve PreIerenLIuI TurIIIs (CEPT) pIun Lo reduce LurIIIs sysLemuLIcuIIy Ior munuIucLured und
processed producLs.
TIe members Iuve uIso esLubIIsIed u serIes oI co-operuLIve eIIorLs Lo encouruge joInL
purLIcIpuLIon In IndusLrIuI, ugrIcuILuruI und LecInIcuI deveIopmenL projecLs und Lo Increuse
IoreIgn InvesLmenLs In LIeIr economIes. TIese eIIorLs IncIude un ASEAN IInunce corporuLIon,
LIe ASEAN ndusLrIuI JoInL VenLures Progrumme (AJV) eLc. ASEAN nuLIons Iuve InLroduced
some progrummes Ior greuLer dIversIIIcuLIon In LIeIr economIes.
ndIu und ASEAN
ndIu Is InLeresLed In muInLuInIng cIose economIc reIuLIons wILI LIe members oI ASEAN, us
LIese counLrIes ure cIoser Lo ndIu. TIe ASEAN counLrIes ure oIIerIng co-operuLIon Lo ndIu In
LIe IIeId oI Lrude, InvesLmenL, scIence und LecInoIogy und LruInIng oI personneI. AIso, ndIu`s
Lrude wILI ASEAN counLrIes Is suLIsIucLory In recenL yeurs.

3Iloe3ce oI PST Iuctors o3 3ter3utio3ul Bosi3ess

Any busIness Is uIIecLed by ILs exLernuI envIronmenL. TIe mujor mucroeconomIc IucLors In LIe
exLernuI envIronmenL LIuL uIIecL LIe busIness ure poIILIcuI, envIronmenLuI, socIuI und
LecInoIogIcuI.
A. Politicul 3viro32e3t
TIe poIILIcuI envIronmenL oI u counLry greuLIy InIIuences LIe busIness operuLIng In LIose
counLrIes or busIness LrudIng wILI LIose counLrIes. TIe success und growLI oI InLernuLIonuI
busIness depends on LIe sLubIe, coIIuboruLIve, conducIve und secure poIILIcuI sysLem In LIe
counLry.
TIe IoIIowIng IucLors uIIecL LIe poIILIcuI envIronmenL In u counLry.
1. Tux PoIIcy: TIe Lux poIIcy oI u counLry uIIecLs LIe proIILubIIILy oI LIe busIness LIere. TIe
CorporuLe TuxuLIon Iuws uIIecL LIe proIILubIIILy dIrecLIy. TIe dIrecL LuxuLIon Iuws uIso
uIIecL LIe busIness becuuse IL InIIuences consumer spendIng. TIe sLrucLure oI IndIrecL

LuxuLIon In u counLry IIke ILs excIse duLy sLrucLure, cusLoms und suIes Lux greuLIy uIIecLs
LIe InpuL cosLs oI u busIness.
or e.g. CounLrIes IIke UAE Iuve very Iow dIrecL LuxuLIon IeveIs InducIng greuL spendIng und
Ience LrudIng und murkeLIng bused busIness ure successIuI. BuL due Lo very IIgI IndIrecL
LuxuLIon IeveIs LIe munuIucLurIng busIness Is noL very successIuI.
z. GovernmenL supporL: One oI LIe mosL ImporLunL poIILIcuI IucLor Is LIe GovernmenL
supporL Lo InLernuLIonuI busInesses. BusIness cun be successIuI onIy II LIe IocuI
governmenL provIdes supporL In Lerms o InIrusLrucLure, IIcense cIeurIng II requIred,
LrunspurenL poIIcy und quIck dIspuLe resoIuLIon mecIunIsm. AIso LIe nuLure oI LIe
poIILIcuI sysLem I.e. democrucy, communIsm eLc. In LIe counLry InIIuences LIe
GovernmenL supporL.
or e.g. LIe RB Ius provIded sIngIe wIndow cIeurunce Ior D und Ience Ius greuLIy Increused
LIe D IeveIs In our counLry.
. ubor uws: LIe Iubor Iuws In u counLry uIIecL LIe vIubIIILy oI u busIness In LIuL counLry.
TIe pensIon Iuws uIso pIuy u crILIcuI roIe especIuIIy In cross border ucquIsILIons. Muny
busInesses Iud Lo be wILIdruwn or cIosed becuuse oI LIe Iubor unresL In LIe counLry.
or e.g.: WILIdruwuI oI PremIer AuLomobIIes due Lo unIon sLrIkes In our counLry.
TIe probIems Iuced by docLors und nurses In UK due Lo LIe resLrIcLIve Iuws In LIuL counLry.
q. EnvIronmenLuI poIIcy: TIe counLrIes envIronmenLuI poIIcy (under LIe KyoLo ProLocoI or
oLIerwIse) uIIecLs muny busIness IIke cIemIcuIs, reIInerIes und Ieuvy engIneerIng.
. TurIIIs und duLy sLrucLure: TIe IeveI oI duLIes und LurIIIs LIuL ure Imposed by LIe
counLry InIIuence ILs ImporLs und exporLs greuLIy. Some counLrIes IoIIow u proLecLIonIsL
poIIcy Lo LIe domesLIc IndusLry by ruIsIng ImporL burrIers or e.g. ndIu In LIe pre
IIberuIIzuLIon eru, RussIu.
6. PoIILIcuI sLubIIILy und poIILIcuI mIIIeu: PoIILIcuI sLubIIILy greuLIy uIIecLs LIe IongevILy oI
LIe busInesses In u counLry. PoIILIcuI rIsk ussessmenL sIouId be done Lo deLermIne LIe
counLry rIsk on LIe busIs oI IoIIowIng purumeLers :
u. ConIIscuLIon: LIe nuLIonuIIzuLIon oI busInesses wILIouL compensuLIon. or e.g. ndIu
durIng LIe nuLIonuIIsL wuve durIng ndIru GundII`s Lenure.
b. NuLIonuIIzuLIon: Resource nuLIonuIIzuLIon Is u mujor rIsk Ior busInesses InvoIvIng
IocuI resources IIke oII, mIneruIs eLc. or e.g. LIe resource nuLIonuIIzuLIon In
CoIumbIu.

c. nsLubIIILy rIsk: TIe possIbIIILy oI mIIILury Lukeovers or Iuge governmenL cIunges.

or e.g. LIe coups In TIuIIund or In IjI Ius uIIecLed LIe proIILs oI busInesses LIere by
us mucI us 6o% due Lo work sLoppuge und properLy desLrucLIon.
d. DomesLIcuLIon: TIe gIobuI compuny reIInquIsIIng conLroI In Iuvor oI domesLIc
InvesLors. or e.g. BurcIuys bunk In SouLI AIrIcu
B. co3o2ic Iuctors
TIe economIc IucLors In u counLry greuLIy InIIuence LIe busIness In LIuL counLry. TIe IoIIowIng
IucLors ure ImporLunL In LIe mucroeconomIc envIronmenL.
1. EconomIc sysLem: LIe economIc sysLem In u counLry I.e. cupILuIIsmJ communIsmJ mIxed
economy (ndIu) Is ImporLunL Ior decIdIng LIe nuLure oI LIe busInesses. TIe nuLure oI LIe
sysLem decIdes LIe uIIocuLIon oI resources. Due Lo gIobuIIzuLIon LIere Is u gruduuI sIIIL
Lowurd murkeL Iorces Lo uIIocuLe resources even In LIe communIsL counLrIes IIke CIInu.
z. nLeresL ruLes: TIe InLeresL ruLes In LIe counLry uIIecL LIe cosL oI cupILuI (II ruIsed IocuIIy)
und LIe operuLIonuI cosLs. nLeresL ruLes uIso deLermIne LIe conIIdence oI LIe
GovernmenL In LIe economy und consumer spendIng.
. ExcIunge ruLes: TIe excIunge ruLes uIIecL InLernuLIonuI Lrude und cupILuI InIIows In LIe
counLry.
q. ncome IeveIs und spendIng puLLern: TIougI IL Is more oI u demogrupIIc purumeLer Ius
Is very ImporLunL beurIng on LIe seII sIde oI uII InLernuLIonuI busInesses. or e.g. n u
counLry IIke ndIu, wILI rIsIng uspIrer popuIuLIon LIere Is u murkeL opporLunILy Ior
producLs IIke Pod (consIdered Iuxury ILems LIII now)
. Sociul Iuctors
BusInesses ure drIven by peopIe boLI us Iumun cupILuI und us consumers. L Is necessury Ior un
InLernuLIonuI busInessmun Lo undersLund LIe socIuI und cuILuruI uspecLs oI LIe counLry LIey
operuLe In. TIe IoIIowIng ure LIe ImporLunL socIuI IucLors.
1. Age dIsLrIbuLIon: LIe uge dIsLrIbuLIon oI LIe popuIuLIon Is ImporLunL Lo consIder LIe
consumpLIon puLLerns In LIe murkeLs. Age dIsLrIbuLIon uIso deLermInes LIe mIndseL oI
LIe murkeL und IeIps segmenLuLIon oI LIe murkeL uccordIngIy. L uIso Ius u beurIng on
LIe empIoyee quuIILy. A young popuIuLIon uIso deLermInes u workIorce.
z. umIIy sysLem: LIe IumIIy sysLem Ius u beurIng on LIe decIsIon mukers In consumpLIon.
or e.g. In sIumIc counLrIes women Iuve u Iess suy In mukIng consumpLIon decIsIons. n
emergIng economIes IIke ndIu cIIIdren ure guInIng ImporLunL roIe In consumpLIon. TIIs
IeIps In posILIonIng oI producLs.

. CuILuruI uspecLs: TIe cuILuruI uspecLs InIIuence LIe wuy LIe busIness Is conducLed In
counLrIes. n Jupun LIere Is u dIIIerenL wuy In wIIcI conLrucLs ure sIgned und execuLed.
n RussIu beIng u communIsL orIenLed mIndseL LIe busIness Is conducLed In u cIosed
munner. LuIIuns Iuve u seemIngIy Iuzy wuy oI doIng busIness und Ience IL Is very
dIIIIcuIL Lo conducL busIness In LIe pucy US wuy.
q. Cureer uLLILudes: LIe cureer uLLILude oI LIe workIorce Is ImporLunL socIuI uspecL.

. Tech3ologicul Iuctors
TecInoIogy Ius u very ImporLunL roIe Lo pIuy In deLermInIng LIe success oI InLernuLIonuI
busInesses becuuse LecInoIogy Ius mude InLernuLIonuI busIness possIbIe. TIe IoIIowIng ure LIe
LecInoIogIcuI IucLors LIuL InIIuence LIe busIness.
1. R&D: LIe supporL LIuL LIe GovernmenL gIves Lo R&D encouruges seLLIng up R&D busIness
IeveIs. AIso LIe euse oI u quuIIIIed IocuI workIorce InIIuence busIness. or e.g. LIe
semIconducLor IndusLry In TuIwun
z. TecInoIogy LrunsIer: TIe euse oI LecInoIogy LrunsIer InIIuences LIe busIness cIImuLe. TIe
envIronmenL wIere LIe LecInoIogy LrunsIer Is noL vIubIe gruduuIIy Ioses ouL on busIness
Irom emergIng counLrIes LIuL seek LecInoIogy LrunsIers. or e.g. In LIe eurIy qos counLrIes
IIke CzecIosIovukIu (LIe CzecI RepubIIc) wus u very LecInoIogIcuIIy udvunced counLry buL
Iud very Iow busIness InLeresL due Lo LIe Iess cIunces oI LecInoIogy LrunsIers. or e.g. GE
wILIdrew operuLIons Irom u JV us LIere us LIey couId noL uccess IocuI experLIse)