TOPICSTOPICS

CUSTOMS UNIONCUSTOMS UNION

COMMON MARKETCOMMON MARKET

FREE TRADE AREAFREE TRADE AREA

CUSTOMS UNIONCUSTOMS UNION

INDIAINDIA

MALAYSIAMALAYSIA

CHINACHINA

SRILANKA SRILANKA

INTRODUCTIONINTRODUCTION

THE CUSTOM UNION WOULD THE CUSTOM UNION WOULD INCLUDE INDIA, CHINA, MALAYSIA INCLUDE INDIA, CHINA, MALAYSIA AND SRILANKA.AND SRILANKA.

ALL FOUR COUNTRIES ARE ASIA’S ALL FOUR COUNTRIES ARE ASIA’S EMERGING ECONOMIC MARKETS AND EMERGING ECONOMIC MARKETS AND HAVE THE POTENTIAL TO FORM A HAVE THE POTENTIAL TO FORM A POWERFUL ECONOMIC BLOC.POWERFUL ECONOMIC BLOC.

Raw material To Manufactured Raw material To Manufactured goodsgoods

DIAGRAM:-DIAGRAM:-

INDIA

AND

CHINA

MALAYSIA

•CRUDE OIL

•NATURAL GAS

SRILANKA

•METAL AND STEEL

•LEATHER AND RUBBER

ABOUT…ABOUT…

The countries indulging in a custom The countries indulging in a custom union have a free trade area with union have a free trade area with common external tariffs.common external tariffs.

Here china and India being amongst the Here china and India being amongst the biggest producers of goods but lack in biggest producers of goods but lack in natural resources.natural resources.

Srilanka and Malaysia have plenty of Srilanka and Malaysia have plenty of natural resources but they lack in natural resources but they lack in factors of productionfactors of production..

ADVANTAGESADVANTAGES

MAXIMUM UTILISATION OF NATURAL MAXIMUM UTILISATION OF NATURAL RESOURCES.RESOURCES.

INCREASE IN EMPLOYMENT.INCREASE IN EMPLOYMENT. INCREASE IN TRADE.INCREASE IN TRADE. INCREASE IN GDP.INCREASE IN GDP. OVERALL ECONOMIC PROSPERITY.OVERALL ECONOMIC PROSPERITY.

COMMON MARKET

Angola Tanzania  Zimbabwe  Namibia  South Africa 

INTRODUCTION

All 5 countries mentioned here, i.e., Angola, Tanzania, Zimbabwe, Namibia, South Africa southern African developing countries.

Each country has a developing economy.

ABOUT…. Common market

It is a customs union with common policies on product regulation.

Makes freedom of movement of all the 3 factors of production (land, capital and labour) and services between the members as easy as within them.

ADVANTAGES

INCREASE IN EMPLOYMENT OPPORTUNITIES.

INCREASE IN TRADE OPPORTUNITIES.

LEAD TO HEALTH AND EDUCATION SECURITY.

OVERALL GROWTH OF GDP.

FREE TRADE AREAFREE TRADE AREA

UNITED STATES OF AMERICAUNITED STATES OF AMERICA

NEW ZEALANDNEW ZEALAND

INTRODUTIONINTRODUTION

New Zealand and the United States are old New Zealand and the United States are old friends.friends.

NEW ZEALAND IS A VERY SMALL ECONOMY NEW ZEALAND IS A VERY SMALL ECONOMY AS COMPARED TO U.S. YET IT HAS AS COMPARED TO U.S. YET IT HAS ENOUGH SCOPE.ENOUGH SCOPE.

BOTH COUNTRIES SHARE GOOD WORKING BOTH COUNTRIES SHARE GOOD WORKING RELATIONS AND SHARE AN EXCELLENT RELATIONS AND SHARE AN EXCELLENT SYSTEM OF COMMUNICATION.SYSTEM OF COMMUNICATION.

BOTH COUNTRIES WILL BE BENEFICIAL.BOTH COUNTRIES WILL BE BENEFICIAL.

ADVANTAGES TO NEW ADVANTAGES TO NEW ZEALANDZEALAND

IT’LL SUSTANTIALLY INCREASE THE IT’LL SUSTANTIALLY INCREASE THE EXPORT OF ITS WELL RENOWNED DAIRY EXPORT OF ITS WELL RENOWNED DAIRY PRODUCTS.PRODUCTS.

MORE TRADE MEANS MORE EMPLOYMENT.MORE TRADE MEANS MORE EMPLOYMENT.

ADVANTAGES TO U.S.ADVANTAGES TO U.S.

US merchandise exports to New Zealand US merchandise exports to New Zealand would rise by about 25% and virtually would rise by about 25% and virtually every US sector would benefit.every US sector would benefit.

NEW ZEALAND HAS FTA AGREEMENT WITH NEW ZEALAND HAS FTA AGREEMENT WITH AUSTRALIA FROM THE PAST 20 YEARS.AUSTRALIA FROM THE PAST 20 YEARS.

IT’LL HELP MERGE U.S. WITH AUSTRALIA IT’LL HELP MERGE U.S. WITH AUSTRALIA FUTURE GIVING THEM LARGER MARKET FUTURE GIVING THEM LARGER MARKET SHARE.SHARE.