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Agreements between Countries to Create Common Markets

The 4th EU Report on the implementation of the Free Trade Agreement (other languages), published in November 2020, with the foreword by DG Trade Director-General Sabine Weyand (other languages), provides an overview of achievements in 2019 and the work that remains to be done on the EU`s 36 main preferential trade agreements. The attached Commission Staff Working Document provides detailed information in accordance with trade agreements and partners. The European Union (EU) is the most integrated form of economic cooperation. As you learned in the introductory case study, the EU began in 1950 to end the frequent wars between neighbouring countries in Europe. The six founding countries were France, West Germany, Italy and the Benelux countries (Belgium, Luxembourg and the Netherlands), all of which signed a contract to operate their coal and steel industries under joint management. Emphasis was placed on the development of the coal and steel industries for peaceful purposes. In 1989, the GCC and the EU signed a cooperation agreement. „Trade between the EU and the GCC countries totalled €79 billion in 2009 and is expected to increase under the FTA. And while strong economic relations continue to form the basis for mutual relations, the EU and the GCC also share common interests in areas such as the promotion of alternative energy, thus helping to solve climate change and other pressing environmental problems; promote appropriate reform of global economic and financial policies; and the improvement of a comprehensive rules-based international system. 39 The Association of Southeast Asian Nations (ASEAN) was founded in 1967 by five founding member countries: Malaysia, Thailand, Indonesia, Singapore and the Philippines. Since its creation, Myanmar (Burma), Vietnam, Cambodia, Laos and Brunei have joined the association.29 Source: „The member countries of the European Union“, Europe, accessed 1 May 2011 europa.eu/about-eu/member-countries/index_en.htm. The largest and most comprehensive regional economic group is the EU.

It began as a free trade agreement with the aim of becoming a customs union and integrating through other means. The formation of the European Parliament and the introduction of the euro, the common currency, make the EU the most ambitious compared to other regional trading groups. [1] It has developed from the European Economic Community (EEC) to the European Community (EC) and the European Union. Iceland, Liechtenstein, Norway and Switzerland, which have decided not to leave the European Free Trade Area, are linked to the EU as a customs union. [2] The EU comprises 28 countries, including 12 countries from Central and Eastern Europe, which have joined since 2004. The EU has abolished barriers to intra-zone trade, introduced a common external tariff and created a common currency, the euro. [2] Regional economic integration has not been as successful in Asia as in the EU or NAFTA, as most Asian countries have relied on US and European markets for their exports. [2] Founded in 1967, the Association of Southeast Asian Nations (ASEAN) was composed of the following countries: Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, Philippines, Singapore, Thailand and Vietnam. The ASEAN Free Trade Area (AFTA), officially established in 1993, was supposed to reduce tariffs on interregional trade to a maximum of 5% by 2008. [2] ASEAN is the third largest free trade agreement in the world after the EU and NAFTA and above MERCOSUR. Established in 1989, the Asia-Pacific Economic Cooperation (APEC) aimed to promote multilateral economic cooperation on trade and investment in the Pacific region. [3] APEC consists of 21 countries bordering the Pacific region; Progress towards free trade is hampered by the size and geographical distance between Member States and the absence of a treaty.

Firms that generally benefit from economies of scaleEcondances of scale Economies of scale refer to the cost advantage a firm enjoys when it increases its level of production. The advantage results from the inverse relationship between the fixed costs per unit and the quantity produced. The larger the volume of production, the lower the fixed costs per unit. Types, examples, advice and increase profitability and innovation more to be competitive in a more intense competitive landscape. The advantages of creating regional agreements are as follows: an even more economically integrated agreement is economic union. Economic unions remove internal barriers, adopt common external barriers, allow the free movement of resources (e.B. labour) AND adopt a common economic policy. The best known example of economic union is the European Union (EU). EU members all use the same currency, conduct monetary policy and trade with each other without paying customs duties. .

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