Globalization Essay Example | Topics and Well Written Essays - 1000 words

Globalization - Essay Example The regional trade agreement chosen for this report is Mercosur. This agreement was created on 26 March 1991, when Argentina, Brazil, Paraguay, and Uruguay signed the Treaty of Asuncià ³n to create the Southern Common Market. The agreement now encompasses the four Latin American countries along with a fifth member state – Venezuela. The purpose of this trade agreement is to promote free trade among the member countries and enable a fluid movement of goods, workers, and services.Mercosur has been very successful in increasing intrabloc trade among its member countries and in reducing tariff and non-tariff barriers. Following this trade agreement, intrabloc trade increased from 9% to 25% of the total exports within eight years. This trade agreement enabled the formation of a common market promoting free trade. The Mercosur member countries also gained in bargaining power to negotiate trade agreements with other countries. Interregional trade among the member countries tripled f rom the US $ 4.1 billion to the US $ 10.7 billion. All countries in the sub-region experienced increased growth of about 6.1% that was the highest to be recorded in a decade. From the figures released by the World Trade Organization, it can be inferred that the trade agreement not only boosted trade among its members but also was successful in increasing trade with the rest of the world. Since the inception of Mercosur, there has been a 207% rise in trade among member countries and 122% increase in trade with the rest of the world.... (2) Report on a Regional Trade Agreement The regional trade agreement chosen for this report is Mercosur (Mercado Comun del Sur/Mercado Comum do Sul/Southern Common Market). This agreement was created on 26 March 1991, when Argentina, Brazil, Paraguay and Uruguay signed the Treaty of Asuncion to create the Southern Common Market. The agreement now encompasses the four Latin American countries along with a fifth member state – Venezuela. The purpose of this trade agreement is to promote free trade among the member countries and enable a fluid movement of goods, workers and services (â€Å"About MERCOSUR†). Mercosur has been very successful in increasing intrabloc trade among its member countries and in reducing tariff and non-tariff barriers. Following this trade agreement, intrabloc trade increased from 9% to 25% of the total exports within eight years (Paiva and Gazel 116). This trade agreement enabled the formation of a common market promoting free trade. The Mercosur member countries also gained in bargaining power to negotiate trade agreements with other countries. Interregional trade among the member countries tripled from US $ 4.1 billion to US $ 10.7 billion. All countries in the sub-region experienced increased growth of about 6.1% that was the highest to be recorded in a decade. From the figures released by the World Trade Organization, it can be inferred that the trade agreement not only boosted trade among its members, but also was successful in increasing trade with the rest of the world. Since the inception of Mercosur, there has been a 207% rise in trade among member countries and 122% increase in trade with the rest of the world