REGIONAL TRADE AGREEMENTS RTA is the group of countries with a specific agreement regarding trade between its members.

There is a structure of economic integration through a liberal trade policy within the group by forming FTA. OBJECTIVE To obtain economic benefits for achieving a more efficient production structure by exploiting economies of scale by spreading fixed cost of production, strengthening political ties between member countries, to ensure increased market access by forming FTA, to improve collective bargaining strength of members against other, to promote free and fair trade, e.g. EU which has its own currency euro against $ FORMS FTA Within FTA no tariff/ non tariff barriers, but each group member can set different tariff for non members. Eg NAFTA Customs Union It is more advanced form of RTA. The members dont only have free trade but also common trade policies i.e. same barriers of trade Common Market It allows free movement of labour & capital within the group Economic Community A more advanced level of integration within all properties of common market plus, some degree of harmonization of macroeconomic policies within the group members Economic Integration The ultimate form of RTA if full economic integration characterized by the abolition of all barriers of trade, uniform social economic policies TECHNOLOGY TRANSFER It is the process by which commercial technology is disseminated. This will take the form of Technology Transfer Transaction which may or may not be a legally binding contract. Bit will involve communication from transferor to recipient Forms- Internalized and Externalized Levels of Technology transfer Operational basic skills Duplicative provision of techno to expand by purchasing techno from transferor Adaptive modification of imported technology according to needs Innovative level the firm or govt can innovate new technology which is more efficient in production