Share
Explore BrainMass

success of an economic union

1. Using the factors that serve as the basis for success of an economic union (political, economic, social, and geographic), evaluate the potential success of the EU, NAFTA, and Mercosur.
2. Visit the Web sites of General Motors and Ford, both car manufacturers in the United States.
Search their sites and compare their international involvement.
How would you classify each - as exporter, international, or global companies?
3. "If the product sells in Dallas, it will sell in Tokyo or Berlin."... Comment on this statement!
4. What is the price-quality relationship? How does this relationship affect a U.S. firm's comparative position in world markets?

Solution Preview

1. Using the factors that serve as the basis for success of an economic union (political, economic, social, and geographic), evaluate the potential success of the EU, NAFTA, and Mercosur.
The political factors behind EU have not been successful. It has not provided an alternative to US power. From the economic point of view there is so much intra EU competition that there are not much benefits for the EU. There are social advantages in a sense that traveling and movement of labor has become easier in EU and it is convenient since Geographically close countries have a common currency.
From the political perspective, NAFTA has been a cause of great protest in US. It was believed that jobs would be lost to Mexico and factories would be moved to Mexico, but that has not happened. From the economic perspective NAFTA provided the US with a platform from which low wage exports could be made. But Mexico targeted on the US market and not every market in the world. The Geographic location of Mexico helps increase exports to the US.
The agreement between Argentina, Brazil, Paraguay and Uruguay is called Mercosur. The point is that there was a political agreement as well as an economic agreement. There was agreement for free movement of goods. This was the ...

Solution Summary

This explanation provides you a comprehensive argument relating to success of an economic union

$2.19