trade bloc

Examples of trade bloc in the following topics:

• The Common Market of the Southern Cone (MERCOSUR)

  • Intra-Mercosur merchandise trade (excluding Venezuela) grew from USD 10 billion at the inception of the trade bloc in 1991, to $88 billion in 2010; Brazil and Argentina accounted for 43% of this total.
  • The trade balance within the bloc has historically been tilted toward Brazil, which recorded an intra-Mercosur balance of over $5 billion in 2010.
  • Trade within Mercosur amounted to only 16% of the four countries' total merchandise trade in 2010, and trade with the European Union (20%), China (14%), and the United States (11%) was of comparable importance.
  • Exports from the bloc are highly diversified, and include a variety of agricultural, industrial, and energy goods.
  • It is the fourth-largest trading bloc after the European Union.

• Political and Regulatory Environment

  • Political stability, trade blocs, tariffs, and expropriation are risks that should be evaluated prior to marketing in foreign countries.
  • Regional trading blocs represent a group of nations that join together and formally agree to reduce trade barriers among themselves.
  • Such agreements are designed to facilitate trade through the establishment of a free trade area, customs union or customs market.
  • Free trade areas and customs unions eliminate trade barriers between member countries while maintaining trade barriers with non-member countries.
  • There are, however, some governments that openly oppose free trade.

• Political Environment

  • Regional trading blocs represent groups of nations that join together and formally agree to reduce trade barriers among themselves.
  • NAFTA is such a bloc.
  • Such agreements are designed to facilitate trade through the establishment of a free trade area customs union or customs market.
  • This eliminates trade barriers between member countries while maintaining trade barriers with non-member countries.
  • These treaties together have worked to form the political and economic bloc known as the European Union.

• The Asia-Pacific Economic Cooperation (APEC)

  • APEC is a forum for 21 Pacific Rim countries that seeks to promote free trade and economic cooperation throughout the Asia-Pacific region.
  • Established in 1989 in response to the growing interdependence of Asia-Pacific economies and the advent of regional trade blocs in other parts of the world.
  • Trade and Investment Liberalization: According to the organization, when APEC was established in 1989, average trade barriers in the region stood at 16.9 percent, but was reduced to 5.5% in 2004.
  • According to a 2008 research brief published by the World Bank as part of its Trade Costs and Facilitation Project, increasing transparency in the region's trading system is critical if APEC is to meet its Bogor Goal targets.
  • Since 2006, the APEC Business Advisory Council, promoting the theory that a free trade area has the best chance of converging the member nations and ensuring stable economic growth under free trade, has lobbied for the creation of a high-level task force to study and develop a plan for a free trade area.

• Trade and Globalization

  • Countries engage in international trade for two basic reasons, each of which contributes to the country's gain from trade.
  • The World Trade Organization (WTO) was formed to supervise and liberalize international trade on January 1, 1995 under the Marrakech Agreement.
  • If a government removes all trade barriers, a condition of free trade exists.
  • In 2008, China's two-way trade totaled US $2.56 trillion.
  • In 2001, it also joined the World Trade Organization.

• Trade Allowances

  • Manufacturers with the best trade allowances will get the best displays in the hair salon.
  • Trade discounts are given to try to increase the volume of sales being made by the supplier.
  • A trade rate discount is offered by a seller to a buyer for purposes of trade or reselling, rather than to an end user.
  • A seller supplying both trade or resellers and the general public will have a general list price for anybody, and will offer a trade discount to bona fide trade customers.
  • Other trade sales promotion methods include trade contests, which are contests that reward retailers that sell the most products, and point-of-purchase displays, which are used to create the urge of "impulse" buying.

• The World Trade Organization (WTO)

  • The World Trade Organization (WTO) was officially formed on January 1, 1995 under the Marrakesh Agreement, with the goal of supervising and liberalizing international trade between participating countries.
  • General Agreement on Trade in Services was established in 1995 to extend the multilateral trading system to service sector, in the same way as the General Agreement on Tariffs and Trade (GATT) provided such a system for merchandise trade.
  • Agreement on Technical Barriers to Trade ensures that technical negotiations and standards, as well as testing and certification procedures, do not create unnecessary obstacles to trade.
  • The WTO has managed international trade negotiations among its members since 1995.
  • Review the purpose and status of the World Trade Organization (WTO)

• Trade vs. Consumer Promotions

  • Trade promotions are targeted toward retailers while consumer promotions are targeted toward consumers.
  • Trade promotions are targeted toward retailers while consumer promotions are targeted toward consumers .
  • Trade promotions are marketing activities executed between manufacturers and retailers.
  • Companies will often use a combination of trade and consumer promotions when launching a new product.
  • Differentiate between trade and consumer promotions relative to a product's marketing mix

• Promotional Methods

  • B2B marketers use industry or trade publications, trade shows, private events, and social media to generate awareness about their products and services.
  • These publications are also placed in industry and trade media to produce favorable publicity.
  • In addition to trade shows and public conferences, seminars and workshops may also be held for potential and existing customers.
  • B2B companies usually conduct research and assess budgetary requirements before exhibiting at trade shows.

• The North American Free Trade Agreement (NAFTA)

  • NAFTA is a 1994 agreement to removes taxes on products traded between North American countries (US, Canada and Mexico).
  • The North American Free Trade Agreement (NAFTA) is an agreement between Mexico, the United States and Canada.
  • The bill removed taxes on products traded between the three countries.
  • NAFTA was created to eliminate barriers to trade and investment between the US, Canada and Mexico.
  • Discuss the goals of ways that the North American Free Trade Agreement (NAFTA) serves its members