International Organizations &

Economic Blocks

Chapter 4
International Marketing
Dr. Amr Kheir-El-Din
International institutions in the world
economy

1. GATT-WTO
2. UNCTAD
3. IMF
4. IBRD
5. OECD
 Regional Economic Integration
1.Free Trade Area
In free trade areas member countries
remove all tariffs among them.

2.Customs Union
In addition to the characteristics of a free
trade area, member countries set the same
customs policy towards non-members.
 Regional Economic Integration
3. Common Market
In addition to the characteristics of a customs union,
member countries agree upon the free movement of
labor and capital.
4. Economic Union
In addition to the characteristics of a common
market, member countries harmonize economic
policies. They are expected to pursue common
monetary and fiscal policy, synchronize taxes, and
develop a common agricultural policies, same
currency, and central parliament.
 Regional Economic Integration
5.Political Union
In effect, it means nations merging together to form
a new nation.
Principal Regional Groupings
European Union
(EU)
Six in 58 The European flag The European anthem

1. France
2. Italy
3. Germany
4. Netherlands
5. Belgium
6. Luxemburg Europe Day, 9 May
The motto: United in diversity
 European Union (EU)
Nine in ’73 Twelve in ’86
7. Denmark 11. Spain
8. U.K. 12. Portugal
9. Ireland

Ten in ’81
10. Greece
 European Union (EU)
Fifteen in ’95
13.Austria
14.Finland
15.Sweden
Twenty Five in’04
16. Czech 21. Bulgaria
17. Slovakia 22. Slovenia
18. Romania 23. Estonia
19. Hungary 24. Lithuania
20. Poland 25. Latvia
 EFTA
1. Switzerland
2. Norway
3. Iceland
4. Liechtenstein
NAFTA
1. U.S.A
2. Canada
3. Mexico
ASEAN
1. Brunai
2. Myanmar
3. Indonesia
4. Malaysia
5. Philippines
6. Singapore
7. Thailand
8. Vietnam
9. Laos
10. Cambodia
Export Processing Zone
An area within a country
exempted from taxes
provided that the output of
the companies based there
is exported overseas.
 Benefits from Economic
Integration
1. Faster economic growth: by joining
together, members nations get larger
resources, larger markets, and economies
of scale for their industries.
2. Countervailing power: for example. EU
seeks a stronger position against the power
of the US and Japan
3. Dynamism: Sluggish national firms or
monopolize lose their protective walls and
are forced to change in a more competitive
direction.
Costs of economic integration

A nation joining a
regional grouping looses
some of its sovereignty
in economic matters.