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Exhibit 1.2: Selected Economies of the World

Exhibit 1.2: Selected Economies of the World

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The Globalizing Economy:

Seven Key Trends

••

••

••

••



Disintegrating

Disintegrating borders

borders

Growing

Growing cross-border

cross-border trade

trade and

and investment

investment

The

The rise

rise ofof global

global products

products and

and global

global customers

customers

Privatizations

Privatizations



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The Globalizing Economy:

7 Key Trends

••

••

••



New

New competitors

competitors inin the

the world

world market

market

The

The rise

rise ofof global

global standards

standards ofof quality

quality and

and production

production

The

The Internet

Internet and

and information

information technology

technology



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Exhibit 1.3: The Globalizing

Economy



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Borders Are Disintegrating:

The World Trade Organization

•• Formal

Formal structure

structure for

for continued

continued negotiations

negotiations and

and for

for

settling

settling trade

trade disputes

disputes among

among nations.

nations.

•• 1947:

1947: Nations

Nations met

met toto reduce

reduce tariffs

tariffs from

from 45%

45% toto less

less

than

than 5%—resulted

5%—resulted inin the

the General

GeneralAgreement

Agreement on

on

Tariffs

Tariffs and

andTrade

Trade (GATT).

(GATT).

1986:

1986: Negotiations

Negotiations began

began inin Uruguay

Uruguay toto continue

continue

reducing

reducing tariffs.

tariffs.



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World Trade Organization

•• 1997:

1997:Trade

Trade ministers

ministers from

from countries

countries representing

representing 92%

92%

ofof world

world trade

trade agreed

agreed toto eliminate

eliminate tariffs

tariffs on

on software,

software,

computer

computer chips,

chips, telecommunication

telecommunication equipment,

equipment, and

and

computers.

computers.

•• WTO

WTO has,

has, nevertheless,

nevertheless, some

some critics.

critics.

Not

Not all

all countries

countries are

are participating

participating equally

equally inin WTO.

WTO.



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Regional Trade Agreements

•• Regional

RegionalTrade

TradeAgreements—agreements

Agreements—agreements among

among

nations

nations toto reduce

reduce tariffs

tariffs and

and develop

develop similar

similar technical

technical

and

and economic

economic standards.

standards.

•• European

European Union:

Union: includes

includes aa large

large number

number ofof

European

European countries.

countries.

•• Allows

Allows free

free movement

movement ofof goods

goods and

and services

services and

and

aa common

common currency.

currency.



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Regional Trade Agreements

•• The

The North

NorthAmerican

American Free

FreeTrade

TradeAgreement

Agreement

(NAFTA):

(NAFTA): links

links United

United States,

States, Canada,

Canada, and

and Mexico

Mexico

inin an

an economic

economic bloc.

bloc.

•• Allows

Allows freer

freer exchange

exchange ofof goods

goods and

and services

services

•• The

TheAsia-Pacific-Economic

Asia-Pacific-Economic Cooperation

Cooperation (APEC):

(APEC):

looser

looser confederation

confederation ofof 19

19Asian

Asian nations

nations with

with less

less

specific

specific agreements

agreements on

on trade

trade facilitation.

facilitation.



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Sell Anywhere, Locate

Anywhere

•• World

World trade

trade growth:

growth: average

average ofof 6.5%

6.5% per

per year

year between

between

1990

1990 and

and 2000.

2000.

•• Nearly

Nearly half

half ofof the

the over

over $5

$5 trillion

trillion inin world

world trade

trade isis

among

among the

the European

European union,

union, the

the U.S.,

U.S., and

and Japan—the

Japan—the

TRIAD.

TRIAD.



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Exhibit 1.5 – Leading

Exporting and Importing

Countries



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Exhibit 1.5 – Leading

Exporting and Importing

Countries, continued



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Exhibit 1.2: Selected Economies of the World

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