Global marketing Essay Example | Topics and Well Written Essays - 500 words - 1

Global marketing - Essay Example Free trade members lack common external tariff unlike in customs union meaning they have different customs and quotas. Free trade area is aimed at reducing barriers to easy exchange so that there is development of trade as a result of division of labour and specialization. Custom Union are normally characterized by generally imposing a common external-tariff on imports from countries who are not members (Sharan). Another characteristic of custom union is that there is no free movement labor among members as well as capital. Custom Union is mutual agreement among the participating neighboring countries to reduce or eliminate customs duty and remove trade barriers on mutual trade. Participants in Custom Union come up with a common external trade policy. In economic integration, Custom union is the third stage and is normally established through trade pacts. Common Market is a formed by countries in the same geographical area to enhance capital among it members and duty free labor movement. It is aimed at bringing economic integration and a common market to the involved member countries. Custom market is characterized by imposing common external tariff on imports from non-members. In Political Union, there is a consolidated and a larger group of countries that share an internationally acknowledged joint government. Political union can be established in a various ways such as; mixed unions incorporating union, and federative annexation. It is characterized by having a common currency and no trade barriers for the member countries. The key provisions of NAFTA which would challenge inclusion of Brazil and Chile is Prohibition of standards as free trade barrier, this is because some product from brazil and chile may not meet U.S. standards may be denied access to market. Another reason is that including Brazil and Chile may lead to changing standards to accommodate their needs whereas NAFTA does not require the United States to change