37 terms

chapter 8


Terms in this set (...)

regional integration
agreements among countries in a geographic region to reduce and ultimately remove tariff and nontariff barriers to the free flow of goods, services, and factors of production between each otehr.
levels of economic integration
free trade area, customs union, common market, economic union, political union
free trade area
all barriers to the trade of goods and services among member contries are removed.
customs market
eliminates trade barriers between ember countreis and adopts a common external trade policy
common market
no barriers to trade between member countries, includes a common external trade policy, and allows factors of production to move freely between members.
economic union
involves the free flow of products and factors of production between member countries and the adoption of a common external trade policy, but also requires a common currency, harmonization of members' tax rates, and a common monetary and fiscal policy
political union
a central political apparatus coordinates the economic, social, and foreign policy of teh member states.
trade creation
occurs when high cost domestic producers are replkaced by low cost produces within the free trade area
trade diversion
occurs when lower cost external suppliers are replaced by higher cost suppliers within the free trade area
european union is a factor of
1. the devastation of Western Europe during two world wars and the desire for a lasting peace and 2. the european nations' desire to hold their won on the world's political and economic stage.
who was teh forerunner of the eu
the european coal and steel company
what countries were in the efta
austria, denmark, finland, liechtenstien, norway, portugal, sweden, switzerland, united kingdom
what countries still are in the efta
iceland, liechtenstein, norway, switzerland
members of the eu
austria, belgium, bulgaria, cyprus, czech republic, denmark, estonia, finland, france, germany, greece, hungary, ireland, ital, latvia, lithuania,, luxembourg, malta, the netherlands, poland, portugal, romania, slovakia, slovenia, spain, sweden, united kingdom
treaty of maastricht
11 of 15 member states... locked in exchange rates.. issued the euro.. national currencies taken out of circulation...
treaty of libson
under this treaty the power of the european parliament is increased... makes the european parliament the co-equal legislator for almost all european laws.. creates new position - president of the european council who will serve a 30 month term and represent the nation states that make up the european union
roles of the european commision
one rep from the gov't of each member state
eu governance
european council, european commission, council of ministers, european parliament, court of justice
european council
heads of state and commission president - resolves policy issues sets policy direction
european commission
commissioners appointed by membrers for 5 year renewable terms. monopoly in proposing implementing montoring legislation
council of ministers
rep fro each member.. ultimate controlling authority. no eu laws w/o approval
european parliament
directly elected members.. propose amendments to legislation, veto power over budget and single market legislation, appoint commissioners
judge from each country
hears appeals of eu laws
who is the head of the eu
jose manuel barroso
where does the eu parliament meet
brussels in belgium and strasbourg in france
single european act
after the second revolution the single european act was adopted by member nations of the ec in 1987... it committed member countries to work toward establishment of a single market by end of 1992.
issues of eu enlargement
countries may want to join but are denied to due to human rights issues.. new members were not able to adopt the euro until 2007 (2010 in case of the latest entrants) and free movement of labor between the new and existing members were not allowed until then also.
phare program
a program of the eu providing financial assistance to countries of central and eastern europe prior to their accession to the union
north american free trade agreemeent
agreement signed by canada mexico and teh us creating a trilateral trade bloc in north america... a trade bloci s atype of intergovernmental agreement often part of a regional intergovernmental organization where regional barriers to trade are reduced or eliminated among the participating states
andean community of nations
customs union comprising the south amercian countries of bolivia, colombia, ecuador and peru. .. trade bloc
economic and political agreement among argentina brazil paraguay uruguay and venezuela and bolivia.. promotes fre trade and the fluid movement of goods, people and currency.
central american common market
costa rica, el salvador, guatemala honduras and nicaragua.. collapsed in 1969 when war broke out betwee honduras and el salvador after a riot at a soccer match between teams from teh two countries... twas a trade pact
customs union created in 1991 between the english speaking carribbean countries under the auspices of the caribbean community. failed to progress toward economic integration.
central america free trade agreement
aim to lower trade barriers between us and six countires for most good services
association of southeast asian nations
brunei cambodia indonesia laos malaysia myanmar philippines singapore thailand and vietnam.. laos myanmar vietnam cammbodia... foster freer trade between member countries and to achieve cooperation in their industrial policies
asia pacific economic cooperation
founded in 1990 at the suggestion of australia.. has 21 member states.. 55 percent of the world's gnp.. 49 percent of world trade..
regional trade blocs in africa
nine trade blocs progress toward teh establishment of meaningful trade blocs is slow