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Eu and Nafta

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Eu and Nafta
Global business environment Individual coursework
KIM KYUNGSIK
08025465
Nowadays, Regional integration by establishing trading bloc seems to be inevitable for most of countries because limited resources like oil and financial capital encouraged them to establish such a trading bloc like NAFTA. Among several trading bloc, European Union evolved more integrated politically and economically over last sixty years. Furthermore, European union have their own flag, parliament, council and commission. Every trading bloc must have their own characteristics in terms of politics and economics. What is similarities and differences between EU and other trading bloc? what kind of positive and negative influences has come to EU members and NAFTA members? In this essay, firstly writer will compare and contrast EU and NAFTA with the help of the level of regional economic integration. Secondly, similarities and differences between EU and NAFTA will be examined through backgrounds and history. In the end, positive and negative aspects from EU and NAFTA will be compared

Firstly, trading bloc characteristics can be differentiated by the level of regional economic integration. The free trade area, customs union, common market, economic union and political union are determined by the level of regional economic integrations. When the integration level is highest between countries in terms of economy and politics, it belongs to Political union however when it has lowest level, then it belongs to free trade area. Free trade area is least integrated level of economic integration. there is not tariff barrier in order to maximize the trade of goods and services between countries however when other countries export to countries where belongs to free trade area bloc, they have to pay differently to each countries. North America Free Trade association(USA,Canada,Mexico) can be typical example for this trading bloc. Within NAFTA, there is no tariff and trade barrier so that many


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