The Advantages and Disadvantages of Caricom Single Market and Economy ( Csme)

Mercosur project is called the common market of South America. It is a trading zone, regional integration, between Brazil, Argentina, Uruguay, and Paraguay, founded in 1991 by the Treaty of Asunción, which was later, amended and updated by the 1994 Treaty of Ouro Preto. Its purpose is to promote free trade and the fluid movement of goods, people, and currency among member states. Mercosur was seen as giving the capability to combine resources to balance the activities of other global economic powers such as the United States and the European Union. By January 1, 1995, 90% of the intra-regional trade circulated free of tariffs and quotas. The member countries adopted a common external tariff (CET) and quotas with nonmember countries. After the creation of Mercosur, trade among the member countries increased rapidly despite the differences in the member countries, making

In order to understand the evolvement of the Single Market of the European Union, one has to take the general background into consideration. Therefore, it is important to have a look at the Treaty on European Union (Maastricht Treaty) which gave birth to the creation of the Single Market. Having been the Common Market before the Maastricht treaty, the European Economic Community (EEC) Treaty already clarified the objective of cooperation between member states. Throughout the Single Market, those objectives should be transformed into reality.

Market economy is an economy system the individuals are owned and controlled most of the resources and are allocated through voluntary market transactions governed by the interaction of supply and demand. The presence of market economy will make a gap or disparity in society. It is happened because people are free to play in the market. In addition, there is no interference from the government and it will lead to the exploitation. It has lead to the market economy become not an option for a country to stay competitive. Competition in the marketplace provides the best possible product to the customer at the best price. When a new product is invented, it usually starts out at a high price, once it is in the market for a period of time, and other companies begin to copy it, the price goes down as new, similar products emerge.

In 2016 Cuba’s economy was a bit indecisive, the first half of 2016 Cuba’s economy collapsed 0.9% while during the last half of 2016 Cuba’s economy ascended 1% (Chase, 2017). Not only does Cuba have a bit of an indecisive economy their economy also seeks reliability from other countries such as the Soviet Union along with Venezuela. For three decades Cuba stayed dependent on the annual subsidies delivered by the Soviet Union. When all subsidies ceased from the Soviet Union in 1991 Cuba’s economy plummeted. Then history later repeated itself with Venezuela as their economy fell and left Cuba’s economy once again in laboriously hard times (Chase, 2017). But everything soon changed for Cuba’s economy once President Barack Obama opened the doors between the United States and Cuba. As of 2017 Cuba’s economy flipped around with the notable increase of U.S. tourist just from 2016. Cuba’s economy has come an astronomical way in twenty-six years, they found their way making it up to the second most popular place to visit throughout the Caribbean’s (Chase, 2017). With the amount of tourist that come to Cuba provides support and cushion on a good feeling of conducting business in Cuba.

The relationship between the United States of America and Latin America nations has been turbulent since the beginning of colonization. The United States had withheld a sense of superiority since its inception. Their view of Pan-Americanism is only shared by them; Canada and most Latin American nations do not share this view. They viewed Latin America’s struggle for independence as a necessity, but did not pledge their assistance until it coincided with American interests and objectives in the area. The author mentions Latin America’s one-crop economy, but they do not emphasize the role the US played in their economies or how much they were involved in their own politics. Recent events, in regards to Cuba, have made certain parts of the chapter

Canadian companies have committed with business in Cuba, and it was successful. It is a relief due to the fact that Canada did not have to compete with U.S. counterparts. Two-way trade amounts come up to more than $1 billion each year, while Canadian companies still have a sizeable presence in the island country’s mining, oil and gas, agricultural and tourism industries. But Canada might not have had any role at all if it weren’t for its unique relationship with the two adversaries, particularly Cuba.

Over the course of the past half-millennium, the 33 countries that now comprise Latin America and the Caribbean have gone through drastic change. Since the discovery of the New World in 1492, each country has gone through some level of colonization by a European power and transition to its current state. During this period the regions have seen political, social, religious and economic transformations of various degrees.

(Davies 122) Today, U.S. relations with the Dominican Republic are described as “excellent” by the U.S. Department of State because the country is an important trade partner “due to its standing in the Caribbean as the largest economy” and “its large bilateral trade” with the United States in a free trade agreement known as CAFTA-DR. http://globaledge.msu.edu/countries/dominican-republic/history) In addition, the Dominican Government has historically been “supportive of many U.S. initiatives in the United Nations” and other international organizations. (http://www.state.gov/r/pa/ei/bgn/35639.htm) Therefore, the United States and its use of “Dollar Diplomacy” in countries like the Dominican Republic prove to be successful in the long term with regards to building the United States into the global power it its

It must be noted that the America’s security interests in the Caribbean include maintaining friendly states. The realist theory of international relations shows that the new policy takes care of America’s national security interests because it is only through reconsidering its relations with Cuba can the United States truly keep its southern border free of any hostile military power. Nevertheless, beyond the rhetoric, the United States can only hope that the Caribbean and Latin America will contribute to its efforts to encourage Cuba to democratize its governance and modernize its economy. Mexico, Chile, Uruguay, Costa Rica, Jamaica, and Peru are the potential partners in this regard. From the foregoing, it should be apparent that the resumption of diplomatic relations with Cuba is for the most part informed by the need to protect America’s interests, confirming the realist assumption that the state serves as the rational sovereign actor in pursuing its self-interest with the goal of ensuring its security and

The CACM is an organization to help regulate economic ways through free trade. The change happened in the 1960s because five nations agree on the idea of creating it (Costa Rica, Nicaragua, El Salvador, Guatemala, and Honduras). No other Central American nation could intervene in the import-substitution-industries (ISI) that the Central American Common Market sustained. A few profits from industries left the region because sixty-two percent of all of the industries were in foreign lands. Imports doubled and tariffs were established. Some of the countries were horribly affected by CACM. Honduras for example; had a low population density. There was lack of competition for land – not all of which was good quality. In 1968 about 300,000 Salvadorans were illegally in Honduras. Some began to leave; some because of the government and some because of the ways the Hondurans. People In El Salvador claimed that Honduran people were being cruel to the immigrants. El Salvador and Honduras were bumping heads in 1969. The “soccer war” happened when El Salvador invaded Honduras which lasted four days. The U.S ended the chaos, but the Central American Common Market never bounced back. The CACM, like neoliberalism, was good at first and unfortunately didn’t work

Cuba is a good example of how the rise of American imperialism has manifested itself in the Caribbean both economically and politically. United States imperialist actions and Cuban nationalist reactions have combined to create difficult, at times dangerous and usually controversial relations between the two neighboring countries that have endured for more than a century. A close geographic neighbor, with a strategically important location in the Caribbean, Cuba had long been sought after by the United States of America for economic, political, and military reasons. Cuba, occupied and plundered, by Spain for centuries, sought independance. These interests collided during the Spanish-American war when the US successfully intervened on behalf

As a result, Mintz completely transformed my ideas on industrial capitalism. As a consumer and lover of sugar, I have now given a considerable amount of thought to the sugar that I consumed so often. The extent to which the Caribbean people and land were exploited is unfathomable. When speaking of a “plantation”, Americans usually think and refer to the cotton plantations in the South. Even those Americans with roots in the Caribbean are completely unaware of the exploitation of their land and people. The long-term effects of this exploitation led to the underdevelopment of these Caribbean countries. These effects are still evident today as most of the Caribbean islands are labeled as “Third World Countries”.

One of the most important distinctions between the economies is the advantages and disadvantages of each economic system. A few advantages of a market

The main interest of this work is to analyse this trade alliance from three different points of view to outline the similarities and differences in contrast to the European Union. To figure out about the initially mentioned question it is planned to start with the economic point of view in the first part. The second part will deal with the political aspects whilst

Since the mid-20th century, countries have progressively reduced barriers, subsidies to domestic industries and diverse restrictions on international commerce in order to promote specialization and greater efficiency in production. In theory, free trade allows nations to focus on their main comparative advantages and profit from cooperation and voluntary trade. This strategy is usually reinforced by treaties between two or more countries where commerce of goods and services can be handled across their common borders, without tariffs and other trade obstacles. As a key component of regional integration in the Americas, CAFTA-DR is one important example of this economic ideology.