Regional Market
-
Upload
prathlakshmi -
Category
Documents
-
view
217 -
download
0
Transcript of Regional Market
-
8/8/2019 Regional Market
1/30
REGIONAL
MARKET
CHARACTERISTICS
BY
PRATHYUSHA REDDY . Y
BHARGAVI . B
SWETHA . K
-
8/8/2019 Regional Market
2/30
MARKET CHARACTERISTIC
POPULATION1. Households2. Urbanization
INCOME1. Per Capita GDP2. Per Capita Income3. Per Capita DiscretionaryIncome
4. Purchasing Power Parity(PPP)
-
8/8/2019 Regional Market
3/30
CONSUMPTION PATTERNS1. per capita expenditures
on basic needs , transportation,health, education and leisure
2. Households owing of appliances, Autos,Computers, TVs
3. household debtINFRASTRUCTURE
1. roadways, railways, airways, waterways2. telecommunications3. internet
FOREIGN DIRECT INVESTMENTGEOGRAPHY
MARKET CHARACTERISTIC
-
8/8/2019 Regional Market
4/30
GATT
General Agreement on Tariffsand Trade
treaty among nations topromote trade among membersHandled trade disputes
Lacked enforcement powerReplaced by World TradeOrganization in 1995
-
8/8/2019 Regional Market
5/30
WTO
Provides forum for trade-relatednegotiations among 141 members based in Geneva serves as dispute mediators empowered with ability to enforce
rulings Countries found in violation of WTO rules
are expected to change policies or else facesanctions
-
8/8/2019 Regional Market
6/30
PREFERENTIAL TRADE AGREEMENT
A preferential trade agreement is
a mechanism that confers specialtreatment on select tradingpartners. By favoring certaincountries, such agreementsfrequently discriminate againstothers.
-
8/8/2019 Regional Market
7/30
EUROPE
European UnionEuropean Free Trade AreaEuropean Economic AreaThe Lome Convention
Central European Free TradeAssociation (CEFTA)
-
8/8/2019 Regional Market
8/30
EUROPEAN UNION
Initially began with the 1958Treaty of Rome
Objective to harmonize national lawsand regulations so that goods, services,
people and money could flow freelyacross national boundaries
1991 Maastricht Treaty set stage fortransition to an economic union with acentral bank and single currency (theEuro)
-
8/8/2019 Regional Market
9/30
EUROPEAN FREE TRADE AREA & ECONOMIC AREA
Austria, Finland, Sweden,Norway, Iceland,Liechtenstein, Switzerland
Free trade area Members (excluding Switzerland) chose to
establish European Economic Area (EEA) Non-EU members of the EEA are expected
to adopt EU guidelines Norway, Iceland, Liechtenstein, and
Switzerland maintain free trade agreementswith other countries as well
-
8/8/2019 Regional Market
10/30
THE LOME CONVENTION
An accord between EU and 71countries in Africa, Caribbean,and the Pacific
Promotes trade and provides poorcountries with financial assistance
from a European Development Fund Currently working to establish a
successor agreement
-
8/8/2019 Regional Market
11/30
CENTRAL EUROPEAN FREE TRADE
ASSOCIATION (CEFTA)
Hungary, Poland, CzechoslovakiaAllows for cooperation in many
areas including: infrastructure and
telecommunications
sub-regional projects inter-enterprise cooperation tourism and retail trade
-
8/8/2019 Regional Market
12/30
THE MIDDLE EAST
Afghanistan, Cyprus, Bahrain, Egypt, Iran,Iraq, Israel, Jordan, Kuwait, Lebanon, Oman,Qatar, Saudi Arabia, Syria, the United ArabEmirates, Yemen Primarily Arab, some Persian and Jews 95% Muslim
3 key regional organizations
Gulf Cooperation Council Arab Maghreb Union Arab Cooperation Council
-
8/8/2019 Regional Market
13/30
SOCIAL
ANDCULTURAL ENVIRONMENTS
-
8/8/2019 Regional Market
14/30
ECONOMIC UNION
Includes the elimination of internalbarriers to trade (as in free trade area)AND
Establishes common external barriersto trade (as in customs union) AND Allows for the free movement of factors
of production, such as labor, capital,
and information (as in commonmarket) AND Coordinates and harmonizes economic
and social policy within the union
-
8/8/2019 Regional Market
15/30
ECONOMIC UNION
Full evolution of economic union creation of unified central bank
use of single currency common policies on issues
ranging from agriculture to
taxation requires extensive politicalunity
-
8/8/2019 Regional Market
16/30
FREE TRADE AREA
Two or more countries agreeto abolish all internal barriers
to trade amongst themselvesCountries continue
independent trade policies
with countries outsideagreement
-
8/8/2019 Regional Market
17/30
For Example, Mexico Has Free Trade Agreements With31 Countries. The Table Above Lists Free Trade AreasThat The United States And Chile Have, Respectively,Established With Other Countries.
-
8/8/2019 Regional Market
18/30
To date, dozens of free trade agreements,many of them bilateral. have beensuccessfully negotiated;
Additional examples of FTAs include the
European Economic Area, a free trade areathat includes the 25-nation European Unionplus Norway, Liechtenstein, and Iceland.
the Group of Three (G3), an FTA
encompassing Colombia, Mexico, &Venezuela; and the Closer EconomicPartnership Agreement, a free tradeagreement between China and Hong Kong.
-
8/8/2019 Regional Market
19/30
CUSTOMS UNIONS
Evolution of Free Trade Area
Includes the elimination ofinternal barriers to trade (as inFTA) AND
Establishes common externalbarriers to trade
-
8/8/2019 Regional Market
20/30
COMMON MARKET
Includes the elimination of internalbarriers to trade (as in free trade area)
AND Establishes common external barriers
to trade (as in customs union) AND
Allows for the free movement of factorsof production, such as labor, capital,and information
-
8/8/2019 Regional Market
21/30
-
8/8/2019 Regional Market
22/30
-
8/8/2019 Regional Market
23/30
Consumer choice is limited (full retail
competition in only two economies: Chile andNew Zealand). Large consumers are able tochoose their suppliers in several economies.
Entry of IPPs, restructuring andprivatization creates competition ingeneration.
The most common supply arrangementinvolves a single buyer , usually state owned,
purchasing all electricity for sale to
consumers (Indonesia, Japan, Korea,Malaysia, Mexico, Philippines, Thailand andVietnam).
-
8/8/2019 Regional Market
24/30
REFORM PROPOSALS IN THE APEC REGION
Introduction of private ownership,particularly in generation, throughprivatization of state owned assets and
entry of IPPs. Separation of network functions of
electricity supply industry(transmissionand distribution) from potentially
competitive functions (generation andretail supply) has been widely adoptedand proposed.
-
8/8/2019 Regional Market
25/30
Introduction of Independent SystemOperators (ISO).Competition inwholesale and retail supply markets,
particularly for large industrialconsumers.
The approaches vary from fullownership separation to weaker forms
requiring vertically integrated firms tokeep separate accounts for eachfunction.
-
8/8/2019 Regional Market
26/30
Introduction of full retailcompetition is considered the finalstage of a phased program of reform.
Independent regulators areconsidered a desirable feature of aliberalized economy (but only sixeconomies have already
implemented independentregulatory frameworks).
-
8/8/2019 Regional Market
27/30
PROBLEMS WITH ABUSE OF MARKET
POWER Cost reduction can be translated intoprice discrimination between different
categories of consumers and smallindustrial customers. The effects of regulatory reform onprices depend crucially on the ability
of regulatory policies to control marketpower after reforms have beenimplemented.
-
8/8/2019 Regional Market
28/30
There is a potential for generators to
exercise significant market power bylimiting supply to increase prices aboveestimated competitive levels:Half of the price paid for wholesale
electricity in parts of Australia 22% above competitive levels in
California
26% higher than the imputedmarginal costs of the marginalsupplier from 1992- 1994 in the UK
-
8/8/2019 Regional Market
29/30
OPTIONS FOR DEALINGWITH ABUSE
OF MARKETPOWER:
Identifying and removing barriers to entryand restrictions on generators (reducing
licensing procedures) Compulsory divestiture of assets in the case
of horizontally integrated generators: tocreate competing generators.
Price regulation: difficulties in designingcost-effective regulation (strategicbehavior or changing demand andcapacity conditions)
-
8/8/2019 Regional Market
30/30