Describe the function of an economic community and a trade agreement. Explain why they are relevant to marketers. Give two examples of important economic communities
What will be an ideal response?
When countries agree to take certain actions to manage resources of goods and services by lowering tariff barriers and promoting trade among members, they form an economic community. Trade agreements are treaties between countries creating a free trade area where business can be conducted without barriers. Trade agreements and economic communities are important to marketers because they set policies in such areas as environmental standards, foreign investment, intellectual property rights, and labor rights that influence strategic decisions for marketers in these regions. The European Union (EU) and the North American Free Trade Agreement (NAFTA) are two of the most powerful economic communities.
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Which of the following ISO standards is related to quality management?
A) ISO 9000 B) ISO 14000 C) ISO 8000 D) ISO 15000
Which of the following statements is FALSE?
A) The incremental IRR investment rule applies the IRR rule to the difference between the cash flows of the two mutually exclusive alternatives. B) When a manager must choose among mutually exclusive investments, the NPV rule provides a straightforward answer. C) The likelihood of multiple IRRs is greater with the regular IRR rule than with the incremental IRR rule. D) Problems can arise using the IRR method when the mutually exclusive investments have differences in scale.