THE GLOBALIZATION OF ECONOMIC RELATIONS

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1. ECONOMIC IS THE RESULT OF HUMAN INNOVATION AND TECH-

GLOBALIZATION NOLOGICAL PROGRESS.

IT REFERS TO THE INCREASING INTEGRATION OF

ECONOMIES AROUND THE WORLD, PARTICULARLY
THROUGH THE MOVEMENT OF GOODS AND SER-
VICES, AND CAPITAL ACROSS BORDERS.

2. GATT was intended to be multilateral, global initiative, and GATT

negotiators did succeed in liberalizing world merchandise
trade

GATT was based on Three principles:

1. Equal, nondiscriminatory trade treatment for all member
nations.
2. Reduction of tariffs by multilateral negotiation. 3. Elimi-
nation of import quotas.

3. World Trade Or- successor of GATT in January 1, 1995

ganization (WTO)

4. North Ameri- North America which includes Canada, United States and
can Free Trade Mexico. But United States leaders is home to more global
Agreement (NAF- industry leaders. A total of 162 companies according to
TA) Fortune magazine's Global 500 ranking.

In 1988, The US and Canada signed free trade agreement

(U.S. and Canada Free Trade Agreement or CFTA). It
formally came into existence in 1989.

On August 12, 1992, representatives from the U.S., Cana-

da, and Mexico concluded negotiations for the NAFTA.
This agreement was approved by both houses of the U.S.
Congress and became effective on January 1, 1994.

5. Andean Commu- It is formerly the Andean Pact, was formed in 1969 to

nity accelerate development of member-states Bolivia, Colom-
bia, Ecuador, Peru and Venezuela through economic and
social integration
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The new approach seems to be working; for example, Peru

now boasts one of the fastestgrowing economies in the
region.

6. Mercosur (Merca- In March 1991, the governments of Argentina, Brazil,

do Comun del Paraguay, and Uruguay signed the Asuncion Treaty to
Sur) - Common form the Common Market of the South (in Spanish, Mer-
Market of the cado Comun del Sur) or Mercosur.
South
On June 25, 1996, Chile's president signed an agreement
of Mercosur effective October 1. Chile chose not to be-
come a full member because it already had lower external
tariffs than the rest of Mercosur; full membership would
have required raising them

7. Asia-Pacific Eco- It is a regional economic forum established in 1989 to

nomic Coopera- leverage the growing interdependence of the Asia-Pacific.
tion (APEC) It aims to create greater prosperity for the people of the
region by promoting balanced, inclusive, sustainable, in-
novative and secure growth and by accelerating regional
economic integration.

APEC has 21 members. The word 'economies' is used to

describe APEC members because the APEC cooperative
process is predominantly concerned with trade and eco-
nomic issues, with members engaging with one another
as economic entities

Member-states: Australia; Brunei Darussalam; Canada;

Chile; People's Republic of China; Hong Kong, China; In-
donesia; Japan; Republic of Korea; Malaysia; Mexico; New
Zealand; Papua New Guinea; Peru; The Philippines; The
Russian Federation; Singapore; Chinese Taipei; Thailand;
United States of America; Viet Nam

8. Association of It is an intergovernmental organization aimed primarily at

Southeast Asian promoting economic growth and regional stability among
Nations (ASEAN) its members.

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There are currently 10 member states: Indonesia,

Malaysia, Philippines, Singapore, Thailand, Brunei, Myan-
mar, and Vietnam. Cambodia and Laos were admitted July
1997. Burma, now Myanmar joined in 1998.

9. European Union It is a political and economic union, consisting of 27 mem-

(EU) ber states that are subject to the obligations and the priv-
ileges of the membership. Originally confined to western
Europe, the EU undertook a robust expansion into central
and eastern Europe in the early 21st century.

Members are: Austria, Belgium, Bulgaria, Croatia, Cyprus,

the Czech Republic, Denmark, Estonia, Finland, France,
Germany, Greece, Hungary, Ireland, Italy, Latvia, Lithua-
nia, Luxem bourg, Malta, Netherlands, Poland, Portugal,
Romania, Slovakia, Slovenia, Spain, and Sweden.

The EU was created by the "Maastricht Treaty", which

entered into force on November 1, 1993.

The treaty was designed to "enhance" European political

and economic integration by creating a single "currency"
(the "euro"), a unified foreign and security policy, and com-
mon citizenship rights and by advancing cooperation in
the areas of immigration, asylum, and judicial affairs. The
EU was awarded the "Nobel Prize" for Peace in 2012, in
recognition of the organization's efforts to promote peace
and "democracy" in Europe.

The "United Kingdom" (UK moved out from the EU in the

middle of 2016 widely term as BREXIT)

10. Economic Com- It is made up of fifteen member countries that are located
munity of West in the Western African region. These countries have both
African States cultural and geopolitical ties and shared common econom-
(ECOWAS) ic interest.

11.

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Southern Southern African Development Community (SADC), orig-
African inally (1979-92) Southern African Development Coordina-
Development tion Conference, regional organization of southern African
Community countries that works to promote economic cooperation
(SADC) and "integration" among the member states and to pre-
serve their economic independence.

The member states are Angola, Botswana, Comoros,

Eswatini, Democratic Republic of the Congo, Lesotho,
Madagascar, Malawi, Mauritius, Mozambique, Namibia,
Seychelles, South Africa, Tanzania, Zambia, and Zimbab-
we.

These projects greatly improved the region's "transporta-

tion infrastructure".

12. Organization of The Organization of the Petroleum Exporting Countries

the Petroleum (OPEC) was founded in Baghdad, Iraq, with the signing of
Exporting Coun- an agreement in September 1960 by five countries namely
tries (OPEC) Islamic Republic of Iran, Iraq, Kuwait, Saudi Arabia and
Venezuela. They were to become the Founder Members
of the Organization.

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