GlobalBusinessTodayNinthEditionChapter9RegionalEconomicIntegrationChapterOutlineOPENINGCASE:TomatoWarsINTRODUCTIONLEVELSOFECONOMICINTEGRATIONTHECASEFORREGIONALINTEGRATIONTheEconomicCaseforIntegrationThePoliticalCaseforIntegrationImpedimentstoIntegrationTHECASEAGAINSTREGIONALINTEGRATIONREGIONALECONOMICINTEGRATIONINEUROPEEvolutionoftheEuropeanUnionPoliticalStructureoftheEuropeanUnionManagementFocus:TheEuropeanCommissionandIntelTheSingleEuropeanActCountryFocus:CreatingaSingleEuropeanMarketinFinancialServicesTheEstablishmentoftheEuroCountryFocus:TheGreekSovereignDebtCrisisEnlargementoftheEuropeanUnionREGIONALECONOMICINTEGRATIONINTHEAMERICASTheNorthAmericanFreeTradeAgreementTheAndeanCommunityMERCOSURCentralAmericanCommonMarket,CAFTAandCARICOMFreeTradeAreaoftheAmericasREGIONALECONOMICINTEGRATIONELSEWHEREAssociationofSoutheastAsianNationsAsiaPacificEconomicCooperationRegionalTradeBlocsinAfrica©2016byMcGraw-HillEducation.Thisisproprietarymaterialsolelyforauthorizedinstructoruse.Notauthorizedforsaleordistributioninanymanner.Thisdocumentmaynotbecopied,scanned,duplicated,forwarded,distributed,orpostedonawebsite,inwholeorpart.162GlobalBusinessTodayNinthEditionChapter9FOCUSONMANAGERIALIMPLICATIONSRegionalEconomicIntegrationThreatsOpportunitiesThreatsSUMMARYCRITICALTHINKINGANDDISCUSSIONQUESTIONSCLOSINGCASE:IWantMyGreekTV!LearningObjectives1.Describethedifferentlevelsofregionaleconomicintegration.2.Understandtheeconomicandpoliticalargumentsforregionaleconomicintegration.3.Understandtheeconomicandpoliticalargumentsagainstregionaleconomicintegration.4.Explainthehistory,currentscope,andfutureprospectsoftheworld'smostimportantregionaleconomicagreements.5.Understandtheimplicationsforbusinessthatareinherentinregionaleconomicintegrationagreements.ChapterSummaryInthischapter,thetopicofregionaleconomicintegrationisexplored.Thelevelsofregionaleconomicintegrationdiscussed(fromleasttomostintegrated)include:afreetradearea,acustomsunion,acommonmarket,aneconomicunion,andafullpoliticalunion.Theargumentsforandagainstregionaleconomicintegrationareprovided.ManystudentswillremembersomeoftheseargumentsfromthedebateoftheratificationoftheNorthAmericanFreeTradeAgreement(NAFTA).Thechapteralsoprovidesinformationaboutthemajortradeblocksoftheworld,includingtheEuropeanUnion,NAFTA,theAndeanGroup,MERCOSUR,andseveralotherLatinAmericanandAsiantradealliances.Inaddition,theimplicationsforbusinessofthesetradeagreementsandothersarefullydiscussed.OpeningCase:TomatoWarsSummaryTheopeningcaseexplorestheconflictbetweenU.S.andMexicantomatoproducers.WiththesupportofU.S.growers,theUnitedStatessignedanagreementunderNAFTAtoestablishapriceflooronthepriceoftomatoes.However,U.S.growerslaterrealizedthatthedealdidnotofferthe©2016byMcGraw-HillEducation.Thisisproprietarymaterialsolelyforauthorizedinstructoruse.Notauthorizedforsaleordistributioninanymanner.Thisdocumentmaynotbecopied,scanned,duplicated,forwarded,distributed,orpostedonawebsite,inwholeorpart.163GlobalBusinessTodayNinthEditionChapter9protectionfromMexicangrowersthattheyhadanticipated.Thisledtolobbyingforchangestotheagreement–lobbyingthatwasmetwithstrongoppositionfromU.S.tomatocompaniesthathaveoperationsinMexicothatwouldbenegativelyaffectedbytheproposedchangestotheagreement,andalsofromU.S.companiesthatsupplyMexicangrowers.Discussionofthecasecanrevolvearoundthefollowingquest...