GLOBAL AND REGIONAL ECONOMIC CORPORATION AND INTEGRATION.

The learning outcomes and the content

In the end of this topic we can able to
1. explain how and why the GATT was created and what historical role in the
international trade is
2. identify the major regional economic areas of cooperation
3. can identify how global businesses benefit from political and economic stability.

The following topics

1st introduction by ALYSSA MAE CAMPILAN
2nd international economic cooperation by ANNA JANE AND ARA SHANE
3rd, the regional economic integration by NILFE BINGAN,
4th THE UNITED NATION AND THE IMPACT ON TRADE by JESCHEL

Introduction:
PPT: Today, economic globalization is a reality and represents an incredible opportunity
to improve economic efficiency and growth in the world. Continued economic
integration and cooperation can eliminate geographic trade restrictions,
promoting the sharing of best practices and expertise, and speeding up the flow
of goods, services, and people across borders.

PPT: Why is it important? The globalization of the world economy has created
unprecedented opportunities for countries to trade goods and services and to
cooperate on common policies. Economic integration has also increased the
opportunities for companies to expand into new markets, and for workers to
move to new jobs.

In addition, These agreements create more opportunity barriers to trade and

investment. Due to a reduction or removal of tariffs, cooperation results in cheaper
prices for consumers in the bloc countries. International trade is important because
countries rely on other countries for the import of goods that can't be readily found
domestically. If a country specializes in the exports of goods, it may have more supply
of certain raw materials than there is demand in its own markets.

How does jt helps business trade:

On the other hand, when two businesses trade goods and services, both businesses
gain something. For example, a business that manufactures cars may trade
goods and services with a business that manufactures engines for cars. This
trade helps both businesses because the businesses are able to create more
goods and services, and they are able to do this more efficiently because they
understand each other's businesses better. Additionally, this trade can help to
expand the market for each business's products.
PPT: International economic cooperation among nations refers to the
collaborative efforts of countries to promote economic growth, trade,
and development through mutual agreements and partnerships.

In the post-World War II environment, countries, came to realize that a major

component of achieving any level of global peace was global cooperation - it is when
nations or countries of the world comes together or work together to pursue a common
good for the benefit of all nations or simple as word it is a collaboration nations when it
come to politically, economically and socially issues of a common good of all nations.

Nations agreed to collaborate to facilitate free trade by entering into bilateral

and multilateral negotiations, among other initiatives.

So, to reduce the risk of conflict and to boost economic recovery after the world war II,
countries came up with solution. Countries agreed to work together to promote free
trade by entering into bilateral and multilateral negotiations. When we say bilateral- it is
the trade agreements between two countries. While multilateral- it is a trade agreement
that involves three or more countries.

The General Agreement on Tariffs and Trade (GATT) resulted from these
agreements.
GATT is the first multilateral free trade agreement who’s overall purpose was to
promote international trade in reducing or eliminating trade barriers such as tariffs or
quotas.

GATT was refined over eight rounds of negotiations, which led to the creation World
Trade Organization on January 1, 1995.

World Trade Organization (WTO) is the only global international organization dealing
with the goals of trade between nations and it mains function is to ensure the
trade flows as smoothly, predictable and freely as possible.

PPT: The goal of international economic cooperation is to create a more interconnected

global economy that benefits all countries, particularly those that are less
developed or struggling economically.

Through collaboration and coordination, countries can create a more stable and
prosperous economic environment that promotes growth and development. By working
together, nations can address common challenges such as poverty, inequality, and
climate change, and create a more equitable and sustainable future for all.

Trade Agreement
Trade agreements address global economic challenges because they provide a
framework for countries to establish rules and regulations that support the flow of
goods and services across borders. Trade agreements provide a platform for countries
to collaborate on issues such as intellectual property rights, labor standards, and
environmental protections, which can help ensure that trade is fair and sustainable.

Investment Partnership

Investment partnerships are crucial in addressing global economic challenges.

They provide a platform for pooling resources and expertise, which can be directed
towards funding and supporting innovative projects that have the potential to drive
economic growth. Through investment partnerships, businesses can access the capital
they need to expand and create jobs, while investors can benefit from the returns
generated by successful projects.

Aid Programs

Aid programs address global economic challenges by providing financial and

technical assistance to developing countries. Through aid programs, developing
countries can access resources that they may not have been able to obtain on their
own, such as technology, expertise, and financial support. This assistance helps to build
infrastructure, create jobs, and strengthen institutions, all of which are critical to
economic development. Overall, aid programs play a crucial role in addressing global
economic challenges and promoting sustainable development.

Joint Initiatives

Joint initiatives are essential in addressing global economic challenges. These

challenges are complex and require a collaborative effort from multiple stakeholders. By
working together, countries and organizations can share resources, expertise, and
knowledge to develop effective solutions. Joint initiatives also promote cooperation and
understanding between nations, which is crucial for global economic stability. Through
joint initiatives, we can address issues such as poverty, inequality, and climate change,
and create a more sustainable and prosperous world for all.

Regional Economic Integration

What Is Regional Economic Integration?

Regional economic integration has enabled countries to focus on issues that are
relevant to their stage of development as well as encourage trade between neighbors.
Do regional trade agreements promote free trade? In theory, yes, but the world may be
moving toward a situation in which a number of regional trade blocks compete against
each other.
The idea behind regional economic integration is that without trade barriers, member
countries will be better off. However, there is some concern that as more countries
become involved in regional agreements, the trading blocs will begin to compete
against each other.

There are five main types of regional economic integration.

1. Free trade area. This is the most basic form of economic cooperation. Member
countries remove all barriers to trade between themselves but are free to
independently determine trade policies with nonmember nations. An example is
the North American Free Trade Agreement (NAFTA).
2. Customs union. This type provides for economic cooperation as in a free-trade
zone. Barriers to trade are removed between member countries. The primary
difference from the free trade area is that members agree to treat trade with
nonmember countries in a similar manner.
3. Common market. This type allows for the creation of economically integrated
markets between member countries. Trade barriers are removed, as are any
restrictions on the movement of labor and capital between member countries.
Like customs unions, there is a common trade policy for trade with nonmember
nations. The primary advantage to workers is that they no longer need a visa or
work permit to work in another member country of a common market. An
example is the Common Market for Eastern and Southern Africa (COMESA).
4. Economic union. This type is created when countries enter into an economic
agreement to remove barriers to trade and adopt common economic policies. An
example is the European Union (EU)
5. Political union
THE UNITED NATION AND THE IMPACT ON TRADE
PPT: The United Nations is a group of countries that have banded together to
improve their economy and social standings. The UN is also responsible for
promoting international trade. By promoting free markets, free trade, and
free movement of people, the UN has helped to increase global trade.

The United Nations (UN) plays a critical role in promoting global trade and
economic development. The organization helps to create a framework for international
cooperation on trade issues, and it supports initiatives to reduce barriers to trade and
investment. Through its various specialized agencies and programs, the UN works with
governments, businesses, and civil society to develop policies that promote trade and
investment that can generate economic growth and jobs. Moreover, the UN supports
multilateral trade agreements, such as the World Trade Organization (WTO), which set
rules for international trade and help to ensure that countries can compete fairly. So UN
helps the countries to promote each products that represents each country just like
here in the Philippines, we are promoting our wonders of nature, cultures, traditions as
well as import and export some products to others countries such as bananas, coconut,
manggo). So, overall, the UN's impact on trade is significant and far-reaching, as it
provides a platform for global dialogue, cooperation, and support to help countries and
businesses participate in the global economy.

PPT : what are the Impact of United Nation on Trade?

The United Nations is an international organization made up of 193 member
states. It was founded in 1945 after the Second World War. The primary role
of the United Nations is to maintain international peace and security. The
organization also helps to promote economic, social, and cultural reform
around the world. The United Nations has played an important role in helping
to promote trade among its member states.

We all know that it's worth noting that the United Nations (UN) has a significant
impact on businesses globally through its various policies and initiatives. Some of these
impacts include:
1. Promotion of sustainable development - The UN promotes sustainable
development through its Sustainable Development Goals (SDGs). The SDGs
address critical economic, social, and environmental issues that affect businesses
globally.
EXAMPLES: Renewable energy projects: promotion of wind, solar, hydroelectric and
other renewable energy sources to reduce reliance on fossil fuels and minimize
greenhouse gas emissions.
2. Human rights and labor standards - The UN supports human rights and labor
standards, which can significantly influence multinational companies' operations
in developing countries.
3. Corporate social responsibility (CSR) refers to the ethical and moral standards
that a company follows in its operations, which benefits society as a whole. The
concept of CSR is gaining importance in today's world, where companies need to
show that their business practices are socially responsible.
4. Peacekeeping and conflict resolution - The UN plays a significant role in
maintaining global peace and resolving conflicts, which can impact businesses'
operations in unstable regions.
5. International trade and investment - The UN promotes fair and equitable
international trade and investment policies that can impact the operation of
businesses in various markets.