Documente Academic
Documente Profesional
Documente Cultură
15th edition
Chapter 10
Europe, Africa,
and the Middle East
Introduction
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Overview
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La Raison dEtre
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Economic Factors
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Political Factors
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State sovereignty
One of the most cherished possessions of any
nation
Relinquished only for a promise of significant
improvement of the national position through
cooperation
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Cultural factors
The more similar the culture, the more likely a market is
to succeed because members understand the outlook
and viewpoints of their colleagues
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Patterns of
Multinational Cooperation (1 of 3)
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Patterns of
Multinational Cooperation (2 of 3)
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Customs union
Enjoys free trade areas reduced or eliminated
internal tariffs
Adds a common external tariff on products
imported from countries outside the union
Common market
Eliminates all tariffs and other restrictions on
internal trade,
Adopts a set of common external tariffs
Removes all restrictions on the free flow of capital
and labor among member nations
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Patterns of
Multinational Cooperation (3 of 3)
Political union
Involves complete political and economic
integration, either voluntary or enforced
Commonwealth a voluntary organization that
provides for the loosest possible relationship
classified as economic integration
Two new political unions came into existence in
the 1990s
The Commonwealth of Independent States
(CIS)
The European Union (EU)
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Europe
Eastern Europe and the Baltic States
Common wealth of Independent States (CIS)
Africa
Middle East
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10
European Union
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European Integration
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European Union (1 of 2)
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European Union (2 of 2)
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Economic and
Monetary Union (EMU)
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The Euro
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Exhibit 10.4
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Expansion of the
European Union
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http://europa.eu/abc/european_countries/eu_mem
bers/index_en.htm
- shows the member states of the European Union
Ten new countries were added in 2004 and as of
today the EU boasts 27 nations with 4 more awaiting
membership
In 2007, the EU celebrated its golden anniversary
and most would agree that it has been a tremendous
success, delivering peace and prosperity to hundreds
of millions of people that previously had lived with
frequent wars and accompanying economic and
social hardships
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Eastern Europe
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Eastern Europe
and the Baltic States
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Eastern Europe
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The Commonwealth
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of Independent States (CIS)
Formed after aborted coup against Gorbachev and
dissolution of USSR
Included the remaining 12 republics after the
formation of the Baltic States
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Commonwealth
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of Independent States (CIS)
Exhibit 10.5
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Africa
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10
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Middle East
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Implications of
Market Integration
Strategic Implications
Opportunities
Market Barriers
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Strategic Implications
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Opportunities
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Market Barriers
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Market Metrics
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Next
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Summary (1 of 2)
Marketing efficiency affected by:
Production efficiency
Derives from specialization
Mass production for mass markets
Free movement of the factors of production
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Summary (2 of 2)
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