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Topic: Trade creation

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In the News (Sat 20 Apr 19)

  Trade creation - Wikipedia, the free encyclopedia
Trade creation is an economic term related to international economics in which trade is created by the formation of a customs union.
The creation of trade is important to the nation entering the customs union in that increased specialization may hurt other industries.
Many possible reasons are listed for the lack of trade creation evidence, given that developed nation customs unions do seem to have "stimulated increased trade and economic growth".
en.wikipedia.org /wiki/Trade_creation   (334 words)

 [No title]
Trade creation and trade diversion \par \par c.
When the trade barriers are eliminated among PTA members, differences in comparative costs will lead \par to shifts in trade, production and investment patterns, according to the law of comparative advantage, that favour the \par lower cost producers and improve economic efficiency within the PTA.
Trade is therefore diverted from the lowest cost producer to a more expensive \par producer due to the PTA.
www.uky.edu /~wallyf/news/nafta.doc   (1901 words)

The Board found that the claimed sign could not fulfil the essential function of a trade mark because it was a slogan commonly used in the sector concerned and would be understood by the relevant public as a mere promotional slogan and not as an indication of the commercial origin of the services.
Even if the sign were used alone, without any other sign or trade mark, the relevant public could not, in the absence of prior knowledge, perceive it other than in its promotional sense.
Even if details of the threedimensional mark were distinctive as such, this would not create distinctivity in cases where a small consumer product like a lighter ist must be stated that the average consumer would not pay much attention to such details.
pkort.hypermart.net /creation.htm   (865 words)

 Asian Development Outlook 2006 - Routes for Asia's Trade - ADB.org
The multilateral, regional, and bilateral trade liberalization scenarios illustrated in the previous section make the point that uncoordinated bilateral liberalization risks sacrificing gains, which could be captured either through cooperative multilateral approaches or through nondiscriminatory (open) regional agreements.
The potential for trade diversion, as opposed to trade creation, is greater in a system of overlapping bilateral agreements.
Asia's trade in electronic goods is largely driven by international vertical specialization and involves a large amount of "back and forth" trade in parts and components.
www.adb.org /Documents/books/ADO/2006/part030500.asp   (3442 words)

 CHAPTER 9   (Site not responding. Last check: 2007-10-12)
Trade diversion effect results when imports from a lower cost supplier outside the union are replaced with imports from a higher cost supplier within the union.
Trade creation effect occurs when domestic production of one member of the union is replaced with cheaper imports.
Comparing the trade creation effect with one country and trade diversion effect with the other country, we can tell whether overall welfare improved or not after the formation of the custom union.
www.eco.utexas.edu /graduate/Konstantinova/i9_Regional.htm   (656 words)

 Trade as “engine” or “handmaiden” of growth
Trade diversion, however, occurs when there is a shift in imports from a lower cost producer outside the region to a higher cost producer within the region (due to the removal of internal barriers, but the maintenance of external barriers) (Viner 1961).
Of the intra-SADC trade that exists, nearly 96% of it is composed of exports from South Africa and Zimbabwe to the rest of the SADC countries.
Trade patterns in the region were shaped by the colonial experience of the region as many of the former colonies continue to trade extensively with their former colonial rulers.
www.princeton.edu /~jpia/1999/Cleary.htm   (5052 words)

 WTO | Trade policy review - Poland 2000
Trade Policy Reviews are an exercise, mandated in the WTO agreements, in which member countries’ trade and related policies are examined and evaluated at regular intervals.
Trade policy is grounded in WTO commitments and trade liberalization, in support of ongoing economic reform, is an important objective.
It has provided for the gradual creation of free trade area in industrial trade, modest reduction of trade barriers in agricultural trade, progressive liberalization in trade in services and flow of capital, as well as the approximation of Polish laws to the EC acquis communautaire.
www.wto.org /english/tratop_e/tpr_e/tp136_e.htm   (7416 words)

 U. Washington, Geography 349, economic integration
Trade creation is enhanced by similarity of the combined economies (in products and efficiency), maximizing potential for gains from increased specialization.
Trade creation is enhanced by a large union of disparate countries, to increase the likelihood that the joined economies will contain true low-cost areas for various products.
Trade diversion, when barriers against external imports are relatively high enough that free trade within the region is substituted for previously external trade flows (generally a second-best solution).
faculty.washington.edu /jwh/349lec06.htm   (594 words)

 Trade Creation and Trade Diversion [ Biz/ed Virtual Developing Country ]   (Site not responding. Last check: 2007-10-12)
The trade creation effect is caused by the extra output produced by the member countries.
Forming a trade bloc with other LDCs may result in only a small trade creation effect as the share of world trade involving LDCs is so small, that the trade bloc has limited influence on the market price and quantity.
If the country joins a trade bloc with a MDC then there may be real advantages to the LDC as resources flow within the bloc to the countries where there are cost advantages and the potential market for exports is significantly expanded.
www.bized.co.uk /virtual/dc/trade/theory/th3.htm   (531 words)

 WTO | Trade policy review - Czech Republic 2001
Merchandise trade (exports and imports) were the equivalent of 120% of GDP in 2000 (up from 105% in 1994), and the ratio of foreign investment to GDP was 5.3% (9% in 1999).
Given the large number of preferential trading agreements to which the Czech Republic participates, MFN rates apply only to a limited share of Czech imports (78% of total imports in 1999 were from free-trade agreement partners).
Further liberalisation of rules based international trade and protection of environment have to be tackled in a mutually supportive manner, without serving the purpose of green protectionism.
www.wto.org /english/tratop_e/tpr_e/tp174_e.htm   (4032 words)

 Preferential Trading Arrangements: Gainers and Losers from Regional Trading Blocs
Given that agricultural trade is less than free, the creation of a PTA may or may not result in large overall economic gains, but member nations are unlikely to be worse off.
The short term effects of creating a PTA are measured in terms of trade creation and trade diversion.
Trade diversion occurs when lower-cost imports from a nonmember nation are prevented from entering the PTA by tariff or nontariff barriers, and are replaced by higher-cost imports from a member nation.
www.ces.ncsu.edu /depts/agecon/trade/eight.html   (3231 words)

 Chapter 11
If forming or joining the trade bloc results in lower prices in the importing member country, the country and the world gain as additional trade is created.
If forming or joining the trade bloc results in shifting the source of imports into the country from low-priced suppliers from countries outside the trade bloc to higher-priced partner suppliers, the country and the world lose as trade is diverted from low-cost to higher-cost producers.
Trade embargoes are usually imposed by large countries that are important in the trade of the target country.
www.wright.edu /~tdung/Chapter_11_Pugel.htm   (2374 words)

 UC Atlas: Trade
The control of trade has been, and continues to be, an important focus of state policy, and a determinant of international inequality.
One way to understand the effect of international trade on a country's economy is to examine its trade as a percent of Gross Domestic Product.
One alternative to globalized free trade is the creation of trade blocs which can manage and promote trade within geographic regions.
ucatlas.ucsc.edu /trade/trade_theme.php   (624 words)

The estimates of trade creation and diversion effects vary for each importing market and forest product depending on the assumptions concerning the price elasticities of import demand and whether developing country imports into major developed country markets face MFN and GSP rates.
The reason trade creation for developing countries increases under Scenario B is the assumption that prior to the Uruguay Round all developing countries faced MFN rates for forest products in developed country markets.
This means that the total trade change is just the sum of the trade creation effects for both developed and developing country imports.
www.fao.org /DOCREP/003/W0723E/w0723e11.htm   (2829 words)

 SSRN-Trade Creating Free Trade Areas and the Undermining of Multilateralism by Emanuel Ornelas
This paper indicates that the consequences of regional trade agreements for the world trade system may be deceiving - an arrangement's apparent virtue may constitute the source of its drawback.
Trade creation amplifies the excluded countries' access to the integrating markets, but also reduces their extra gains from multilateral liberalization.
Ornelas, Emanuel, "Trade Creating Free Trade Areas and the Undermining of Multilateralism" (November 2003).
papers.ssrn.com /sol3/papers.cfm?abstract_id=519422   (285 words)

 CARD: Trade, Wealth Creation,and American Agriculture
At a personal level, we intuitively know that trading our specialized labor with others (using money as the means of transactions) gives us a higher standard of living than if we tried to produce everything ourselves.
The notion that the gains from foreign trade should be measured by what we import, not by what we export, is difficult for many to accept.
The fourth biannual WTO trade ministers' conference is scheduled to meet in Doha, Qatar, on November 9.
www.card.iastate.edu /iowa_ag_review/fall_01/trade.aspx   (2077 words)

 Regionalism in trade is back---and here to stay
In choosing its trade policy, each nation operates on the premise that when it liberalizes trade, it alone bears the cost of liberalization---while all those that obtain freer access to its market share the benefits.
The theoretical literature on the economics of trading blocs is still in its infancy.
Trade reforms of the 1980s have led to the creation of a liberal trading environment in a large number of Latin American countries and an increasing number of African countries.
www.worldbank.org /html/dec/Publications/Bulletins/PRBvol3no3.html   (3403 words)

 Trade Diversion: An Islamic FTA?
Trading between OIC countries is worth about $800bn (£456bn) - no more than 7%...
Trading between OIC countries is worth about $800bn (£456bn) - no more than 7% of global trade as a whole.
Currently, trade within the bloc amounts to 13 percent of the grouping's total trade, so there's plenty of potential for diversion.
www.tradediversion.net /archives/2005/10/an_islamic_fta.html   (451 words)

 The high price of 'free' trade
NAFTA is a free trade and investment agreement that provided investors with a unique set of guarantees designed to stimulate foreign direct investment and the movement of factories within the hemisphere, especially from the United States to Canada and Mexico.
Trade, however, is also expected to increase the wages of the workers producing exports, but growing trade deficits have meant that the number of workers hurt by imports has exceeded the number who have benefited through increased exports.
Thus, NAFTA and other sources of growing trade deficits were responsible for a change in the composition of employment, shifting workers from manufacturing to other sectors and, frequently, from good jobs to low-quality, low-pay work.
www.epinet.org /content.cfm/briefingpapers_bp147   (4867 words)

 Britain, Denmark and Sweden Would Gain Little Trade from Joining the Euro
Furthermore, the trade creation among countries that entered EMU was modest: +9% controlling for other factors.
This is due to the fact that euro area membership has acted like a unilateral trade liberalization by the 'ins', which boosted their imports from the 'outs' almost as much as their imports from fellow euro-users.
The small increase in trade between countries that switched to the euro weakens the political case for British, Danish and Swedish membership in the euro area while the small size of the pro-trade effect weakens the economic argument.
www.cepr.org /press/P178.htm   (897 words)

 Trade diversion - Wikipedia, the free encyclopedia
Trade diversion is an economic term related to international economics in which trade is diverted from a more efficient exporter towards a less efficient one by the formation of a free trade agreement.
The decreased output of the good or service traded from one nation with a high comparative advantage to a nation of lower comparative advantage works against creating more efficiency and therefore more overall surplus.
Trade was diverted from New Zealand, and created between France and the UK.
en.wikipedia.org /wiki/Trade_diversion   (341 words)

 Trade pacts: Why it’s a big deal
They are geographically apart, are all labour-abundant developing countries without clear gains from trade, and it’s unclear the agreement will result in trade creation and increased welfare.
A trading agreement is an arrangement between countries to reduce tariff barriers.
Second, it is a way of reducing barriers to trade and reduce custom duties which may not be as easy to do in a unilateral manner.
www.bilaterals.org /article.php3?id_article=5910   (740 words)

 International Trade and Export Procedures Week 4
Trade diversion occurs when the supply of products shifts from countries that are not members of an economic bloc to those that are.
Once protection is eliminated among member countries, trade creation allows MNEs to specialise and trade based on comparative advantage.
The Asia-Pacific Economic Cooperation (APEC) is a group of eighteen countries that controls half the world's output and 46 percent of the world's merchandise trade, and its goal is to reduce trade barriers and improve cooperation among the nations of the Pacific Rim.
www.geocities.com /apapadimos/BUSO206/Week4.htm   (617 words)

 Trade Creation, Trade Diversion, and Endogenous Regionalism
Estimates of trade creation and diversion for each new trade agreement started between 1985 and 1994 are generated by comparing trade flows between country pairs at the 4-digit SITC industry level with a counterfactual prediction of trade flows that would have occurred in the absence of the preferential agreement.
I then estimate the determinants of trade creation and trade diversion (TD), which provides a test of the proposition that trade diversion is less severe among countries with significant bilateral trade prior to a preferential agreement.
Finally, the estimated determinants of trade creation and diversion can be used to predict what these values would be for country pairs that do not form preferential agreements.
ideas.repec.org /p/ecm/nasm04/289.html   (330 words)

 Trade Creation and Trade Diversion Under NAFTA
Aggregate and more micro data on trade between the U.S., Canada, and Mexico are used to attempt to assess the early effects of Mexican entry into NAFTA.
Although the fraction of Mexican trade with the U.S. and Canada has risen sharply, a number of factors have contributed to this result.
Mexican reduction of tariffs and quantitative restrictions and the Mexican alteration of exchange rate policy at the end of l994 were both important.
ideas.repec.org /p/nbr/nberwo/7429.html   (762 words)

 Learn How To Trade Profitably
Brian Dibbins is well known for his attention to detail so when I found out that he had co-written a book about trading profitably with his trading mentor; John Pontikas, I just had to get it.
Trading can be as simple or as complicated as you choose to make it.
Their book ‘Learn How To Trade Profitably” simplifies Technical Analysis for you and provides you with three trading systems including entry and exit signals.
www.universalwealthcreation.com /tradeprofitably.html   (702 words)

 The Effects of the BSEC on Regional Trade Flows
trade area is not likely in the foreseeable future, the commitment of members
as they had created marked differences in the trade and exchange rate regimes.
expanding trade between members is another question left to be contemplated in the
www.photius.com /bsec/regional_trade.html   (3686 words)

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