W CovernmenL announced Lhelr forelgn Lrade

pollcles wlLh respecL Lo Lhe followlng from

Llme Lo Llme 1hese are also called Lhe
lnsLrumenLs of Lrade pollcy 1hey are
1arlffs
W Subsldles
W lmporL quoLas
W volunLary LxporL 8esLralnLs
W Local conLenL requlremenLs
W AdmlnlsLraLlve pollcles
Carte|s
W lnLernaLlonal carLels whlch are agreemenLs
beLween producers locaLed ln dlfferenL counLrles or
beLween governmenL of dlfferenL counLrles Lo
resLrlcL compeLlLlon hamper free Lrade ln Lhe
producL concerned CarLels were promlnenL ln
Cermany durlng 19
Lh
CenLury
W 1he maln alm of carLels ls Lo conLrol prlces Lhls ls
ofLen accompanled by ouLpuL and lnvesLmenL
quoLas for maklng Lhe prlce conLrol effecLlve
lnLernaLlonal carLels are sponsored or sancLloned
by governmenLs of Lhe counLrles concerned
W Lg are CrganlzaLlon of eLroleum LxporLlng
CounLrles (CLC) and lnLernaLlonal Alr 1ransporL
SLaLe 1radlng
W lL means lmporL and exporL LransacLlons of a sLaLe
owned or sLaLe conLrolled agency lnvolvlng
purchase of goods for commerclal resale ln a
broader sense sLaLe Lradlng also lncludes purchases
from abroad for governmenLal use and dlsposal of
surplus sLocks orlglnally purchased by governmenL
W ln cenLrally planned economles sLaLe Lradlng ls Lhe
rule 1he ob[ecLlve of esLabllshlng Lhe SLaLe 1radlng
CorporaLlon of lndla (S1C) was Lo expand Lhe
forelgn Lrade wlLh Lhe cenLrally planned economles
tate 1rad|ng |n Ind|a
W 1he governmenLs role ln forelgn Lrade ls
dlrecL parLlclpaLlon ln Lhe lmporL and exporL
of buslness Lhrough lLs agencles llke SLaLe
1radlng CorporaLlon of lndla (S1C) 1he
Mlneral and MeLals 1radlng CorporaLlon of
lndla (MM1Cl) and Mlca 1radlng CorporaLlon
of lndla (Ml1CC)
W 1he S1Cl (1936) was esLabllshed prlmarlly Lo
deal wlLh bllaLeral 1radlng arLners ln LasL
Luropean CounLrles 1he ob[ecLlves of S1Cl
are
tate 1rad|ng |n Ind|a Cb[ect|ves
W 1o reduce dlfflculLles faced by CenLrally planned
economles ln expandlng forelgn Lrade
W 1o malnLaln quanLlLaLlve regulaLlons of lmporLs and
some equlllbrlum ln Lhe prlces of commodlLles and
lndlgenous producLs
W 1o provlde developmenL flnance for organlzed
producLlon and boosL exporLs of small scale secLor
W 1o check unhealLhy compeLlLlon
W 1o organlze lnLegraLed faclllLles of producLlon
LransporL and porL faclllLles
W 1o faclllLae Lhe lmporL of goods under forelgn ald
programmes
1rade 8|ocs
Grow|ng keg|ona||sm and Intrakeg|ona| 1rade
W 1he global Lradlng sysLem has wlLnessed an lncrease
ln reglonal economlc lnLegraLlons or Lrade blocs
1he popular names for Lhls ls (8eglonal lnLegraLlon
AgreemenL/ArrangemenL8lA or 8eglonal 1rade
AgreemenL81A)
W A LoLal of 263 81As had been noLlfled Lo Lhe
CA11/W1C unLll May 2003
W Many counLlres belong Lo more Lhan one 8lA
Maxlco ls a member of 13 8lAs lL ls derlvlng over
80 of lLs lporLs from preferenLlal parLners
W More Lhan 30 of Lhe world Lrade occurs wlLhln
acLual or prpspecLlve Lradlng blocs
1rade 8|ocs
Mot|vat|ng Iactors of kIA]k1A format|on
W 1o promoLe lnLerreglonal Lrade
W 1o obLaln economlc beneflLs from achlevlng a more
efflclenL producLlon sLrucLure by explolLlng
economles of scale Lhrough spreadlng flxed cosLs
over larger reglonal markeLs lncreased economlc
growLh from lul
W 1o pursue non economlc ob[ecLlves such as
sLrengLhelng pollLlcal Lles and managlng mlgraLlon
flows
W 1o ensure lncreased securlLy of markeL access for
smaller counLrles by formlng reglonal Lradlng blocs
wlLh larger counLrles
lorms of lnLegraLlon
W Lconomlc lnLegraLlon
W Soclal lnLegraLlon
W lnLernaLlonal lnLegraLlon
Ma|n Character|st|cs of econom|c |ntegrat|on
Iree 1rade
Area
Iree trade
among
members
Customs
Un|on
lree Lrade
among
members
Common exLernal
commerclal pollcy
Common
market
lree Lrade
among
members
Common exLernal
commerclal pollcy
lree facLor
moblllLy
wlLhln Lhe
markeL
Lconom|c
Un|on
lree Lrade
among
members
Common exLernal
commerclal pollcy
lree facLor
moblllLy
wlLhln Lhe
markeL
Parmonlze
d economlc
pollcles
Lconom|c
Inegrat|on
lree Lrade
among
members
Common exLernal
commerclal pollcy
lree facLor
moblllLy
wlLhln Lhe
markeL
Parmonlze
d economlc
pollcles
SupernaLural
organlzaLlonal
sLrucLure
1 Luropean unlon
W 1he Luropean Lconom|c Un|on (LLC) a|so known as
Luropean Common market or Luropean
commun|ty
W It |s the most successfu| of a|| reg|ona| econom|c
|ntegrat|on scheme
W Lstab||shed on 1Ianuary 19S8 by v|rtue of the
1reaty of kome Compr|sed on|y s|x nat|ons
(8e|g|um Irance Iedera| repub||c of Germany
Ita|y Luxembourg and the Nether|ands
1he ob[ect|ve of th|s |ntegrat|on were ment|oned |n
1he 1reaty of kome
L||m|nate tar|ffs quotas and other barr|ers on
|ntracommun|ty trade
Dev|se a common |nterna| tar|ff on the|r |mports
rom the rest of the wor|d
A||ow the fe movement of factors of product|on
w|th|n the commun|ty
narmon|ze the|r taxat|on monetary and soc|a|
secur|ty po||c|es
Adopt a common po||cy on agr|cu|ture 1ransport
and compet|t|on |n |ndustry
1 Luropean unlon
1 Luropean unlon
W J|th effect from May 2004 the tota| membersh|p
of the LU |ncreased to 27
W 1he member countr|es are
W Un|ted k|ngdom Denmark and Ire|and (1973)
W Greece (1981)
W pa|n and ortuga| (1986
W Lston|a Latv|a L|thuan|a o|and Czech kepub||c
nungary |oven|a Cyprus and Ma|ta(2004)
W 8u|gar|a and koman|a (2007)