1.
Andean Community (CAN): A South American form of economic integration involving Bolivia, Columbia, Ecuador, Peru, and Venezuela
2.
Asia Pacific Economic Cooperation (APEC): a cooperation formed by 21 countries that border the Pacific Rim to promote multilateral economic cooperation in trade and investment in the Pacific Rim
3.
Association of Southeast Asian Nations (ASEAN): a free-trade area involving the Asian countries of Brunei, Malaysia, the Philippines, Singapore, and Thailand
4.
Bilateral integration: a form of integration between two countries in which they decide to cooperate more closely together, usually in the form of tariff reduction
5.
Caribbean Communication (CARICOM): a customs union in the Caribbean region
6.
Common Market: a form of regional economic integration in which countries abolish internal tariffs, use a common external tariff, and abolish restriction on factor mobility
7.
Dynamic effect: the overall growth in the market and the impact on a company of expanding production and achieving greater economies of scale
8.
Economic integration: the abolition of economic discrimination between national economies, such as within the EU
9.
Economy of scale: the lowering of cost per unit as output increases because of allocation of fixed costs over more units produced
10.
Euro: common currency in Europe
11.
European Union (EU): a form of regional economic integration among countries in Europe that involves a free-trade area, a customs union, and the free mobility of factors of production that is working toward political and economic union
12.
General Agreement on Tariffs and Trade (GATT): a multilateral arrangement aimed at reducing barriers to trade, both tariff and nontariff ones; at the signing of the Uruguay round, the GATT was designated to becom the WTO
13.
MERCOSUR: a major sub regional group established by Argentina, Brazil, Paraguay, and Uruguay, which spun off from ALADI in 1991 with the goal of setting up a customs union and common market. Venezuela has applied for membership
14.
Most-favored-nation (MFN) clause: a GATT requirement that a trade concession that is given to one country must be given to all other countries
15.
Normal trade relations: a privilege that replaced the MFN clause and is granted to official members of the WTO
16.
North American Free Trade Agreement (NAFTA): a free trade agreement involving the US, Canada, and Mexico that went into effect on January 1, 1994, and will be phased in over a period of 15 years
17.
Organization of Petroleum Exporting Countries (OPEC): a producers' alliance among 12 petroleum-exporting countries that attempt to agree on oil production and pricing policies
18.
Regional integration: a form of integration in which a group of countries located in the same geographic proximity decide to cooperate
19.
South American Community of Nations (CSN): organized by CAN and MERCOSUR and other South American countries, goals are to liberalize trade and eventually have a common currency, parliament, and passport
20.
Static effect: the shifting of resources from inefficient to efficient companies as trade barriers fall
21.
Triad: Europe, North America, and Asia
22.
World Trade Organization (WTO): a voluntary organization through which groups of countries negotiate trading agreements and which has authority to oversee trade disputes among counties
