AN

OVERVIEW

CASE STUDY

BUSINESS
MODEL
THE THREAT OF PROTECTIONISM

THE HOPE OF PROSPERITY

IN WORDS OF GEORGE. W. BUSH:

“OPEN TRADE FUELS THE ENGINES OF ECONOMIC GROWTH

THAT CREATES NEW JOBS AND NEW INCOME. IT APPLIES THE
POWER OF MARKET TO THE NEEDS OF THE POOR. IT SPURS
THE PROCESS OF ECONOMIC AND LEGAL REFORM AND
REINFORCES THE HABITS OF LIBERTY THAT SUSTAIN
DEMOCRACY OVER THE LONG TERM”
U.S PROTECTIONISM PEAKED IN THE YEAR 1930.

TARIFFS PLAYED AN IMPORTANT ROLE IN TRADE POLICY &

WERE THE PURPOSE OF REVENUES.

LARGEST SOURCE OF REVENUE FROM 1790’S TO THE EVE

OF WORLD WAR-I.
CONTRIBUTED TO THE CONFLICTS BETWEEN NATIONS.

LED TO THE “AMERICAN RESOLUTION” & CIVIL WAR.

LED TO GREAT DEPRESSION IN THE COUNTRY.

US RECOGNIZED THE IMPORTANCE OF THE
INTERNATIONAL TRADE & PROMOTED GATT IN 1947.

90+ COUNTRIES JOINED GATT AGREEMENTS BY THE END

OF 1980.

GATT WAS RENAMED AS WTO TO PROVIDE THE MUCH

NEEDED POTENTIAL OFFERING.
RATIFIED A NORTH AMERICAN FREE TRADE AGREEMENT
(NAFTA) IN 1994.

LATER JOINED MANY OTHER MULTI-NATIONAL

AGREEMENTS.
ACCESS TO LARGE FOREIGN MARKETS AT REDUCED
PRICES, WHICH IN TURN CAN REDUCE INFLATION.

PROMOTES ECONOMIC GROWTH, SOCIAL STABILITY &

DEMOCRACY IN COUNTRY

ADVANCES WORLD’S PROSPERITY & INDUCTS PEACE IN

INTERNATIONAL RELATIONS.
TODAY $12 TRILLION U.S ECONOMY IS BOLSTERED BY FREE
TRADE.

AGRICULTURAL EXPORTS HIT A HIGH RECORD.

SERVICE SECTOR ACCOUNTS ABOUT 30% OF THE VALUE OF

AMERICAN EXPORTS.

REAL PER CAPITA GDP IN US HAS CLIMBED FROM $5,061 IN 1933

TO ABOUT $36,000 IN 2006 & 40 MILLION NEW JOBS WERE
RAISED.
WOULD GAIN ABOUT $77 BILLION BY REMOVING REMAINING
TRADE BARRIERS.

REDUCING AGRICULTURAL, MANUFACTURING & SERVICE

TRADE BARRIERS BY ONE-THIRD WOULD ADD $164 BILLION
ANNUALLY TO US ECONOMY.(UNIV OF MICHIGAN).

COMPLETE ELIMINATION OF TRADE BARRIERS WOULD BOOST

US ANNUAL INCOME BY $497 BILLION.
 SUPRANATIONAL & INTERGOVERNMENTAL

31% 163
TOTAL WORLD’S ECONOMIC OF THE TOP 500
OUTPUT LARGEST CORPORATIONS

SINGLE MARKET – COMMON CURRENCY

DECREASED THE NATIONAL DEBT BY 2.5%

ZLOTY BECAME STRONGER AGAINST

- EU - 11.1%
- US DOLLAR - 17%
 2002 2003 2004 2005 2006

Real GDP 1.5 1.1 3.7 4.2 6.1

Growth

Industrial 1.4 1.3 2.4 3.4 4.6

Production

Per Capita 8500 7500 9200 9400 9800

Income
FREE TRANSFER OF GOODS, SERVICES, CAPITAL.

COMPETITIVE MARKET AND LOWERING OF PRICES.

SOCIAL BENEFITS: SAFETY OF ITS CITIZENS, JOB

SAFETY, HEALTH, EDUCATION, INFORMATION.

 MANUFACTURING AND OPERATIONAL CENTERS FOR
EUROPE
(GILLETT, COLGATE-PALMOLIVE AND PROCTOR & GAMBLE)

CENTRALIZED LOCATION.

LARGEST MARKET IN CENTRAL EUROPE

CONTINUED ECONOMIC GROWTH.

POLAND'S CENTRALIZED LOCATION.
 STRATEGY

SKILL STRUCTURE

SHARED
VALUE

STYLE SYSTEMS

STAFF
 SHARED VALUE
ECONOMIC DEVELOPMENT OF ALL THE MEMBER COUNTRIES.

STRATEGY

 LIBERALIZATION OF ECONOMIES OF MEMBER COUNTRIES.

 FREE FLOW OF INFORMATION.

 REMOVAL OF SUBSIDIES AND OTHER DISCRIMINATORY PRACTISES.

 FAIR NORMS BETWEEN THE MEMBER COUNTRIES.

HEADS OF THE NATIONS

MINISTERIAL LEVEL

SECRETARIAL LEVEL
SECRETARIAL MINISTERIAL HEADS OF THE
LEVEL LEVEL NATIONS