Chapter 8
Order by
28 terms
Terms | Definitions |
|---|---|
 Regional Economic Integration | agreements among countries in a geographic region to reduce, and ultimately remove, tariff and non-tariff barriers to the free flow of goods, services, and factors of production between each other |
| Free Trade Area | area in which all barriers to the trade of goods and services among member countries are removed |
| European Free Trade Association (EFTA) | most enduring free trade area in the world, which focuses on free trade in industrial goods and currently includes Norway, Iceland, Liechtenstein, and Switzerland |
| Customs Union | group of countries committed to eliminating trade barriers and adopting a common external trade policy |
| Common Market | group of countries committed to eliminating trade barriers, adopting a common external trade policy, and allowing factors of production to move freely between members |
| Economic Union | group of countries committed to removing trade barriers, adopting a common currency, harmonizing tax rates, and pursuing a common external trade policy |
| Political Union | central political apparatus coordinating the economic, social, and foreign policy of its member states |
| Trade Creation | trade created within a free trade area due to the replacement of high-cost domestic or external producers by low-cost external production |
| Trade Diversion | trade diverted within a free trade area when lower-cost external suppliers are replaced by higher-cost external suppliers |
| European Union (EU) | regional economical union of most European countries, formed as a result of the 2 world wars and the European nations' desire to hold their own in the world's political and economic stage |
| Treaty of Rome | signed in 1957; this established the European Community, a forerunner to the European Union, and created the common European market |
| European Commission | responsible for proposing, implementing, and monitoring compliance with EU legislation; run by a group of commissioners appointed by each member country |
| European Council | ultimate decision-making body of the EU, it passes legislation from the commission into law and is comprised of one representative from each member state's government |
| European Parliament | made up of 732 members directly elected by member states' populations, it serves as a consultative body to debate and propose amendments to the legislation forwarded from the council |
| Treaty of Lisbon | 2007 treaty designed to increase the power of the European Parliament |
| Court of Justice | comprised of one judge from each member state, this is the supreme appeals court for EU law |
| Single European Act | adopted by members of the European Community in 1987, this act committed member countries to establish a single market by the end of 1892 |
| Masstricht Treaty | a 1991 treaty committing members of the EC to adopt a common currency by 1999 |
| Optimal Currency Area | an area of countries where similarities in the underlying economic activity structure make it feasible to adopt a single currency and use a single exchange rate |
| North American Free Trade Agreement (NAFTA) | free trade agreement among Canada, Mexico, and the United States officially implemented in 1994 |
| Andean Pact | based on the EU model and begun in 1969, this agreement unites Bolivia, Chile, Ecuador, Colombia, and Peru in free trade, but it has been unsuccessful at achieving its stated goals; renamed the Andean Community in 1997 |
| MERCOSUR | free trade pact among Brazil, Argentina, Paraguay, Uruguay, and Venezuela, originating in 1988 |
| Central American Common Market | trade pact among Costa Rica, El Salvador, Guatemala, Honduras, and Nicaragua, which began in the early 1960s but collapsed in 1969 due to war |
| Central America Free Trade Agreement (CAFTA) | agreement of the member states of the Central American Common Market joined by the Dominican Republic to trade freely with the United States |
| CARICOM | established in 1973 to promote a customs union between the English-speaking Caribbean countries by 1991, but it failed |
| Caribbean Single Market and Economy (CSME) | unites six CARICOM members in agreeing to lower trade barriers and harmonize macro-economic and monetary policies |
| Association of Southeast Asian Nations (ASEAN) | attempt at regional economic integration among Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand, and Vietnam |
| APEC | organization designed to increases multilateral economic cooperation between nations bordering the Pacific Ocean |
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