Welcome to class of Governments Emerging Markets and

Welcome to class of Governments, Emerging Markets, and Trading Blocks Dr. Satyendra Singh Professor, Marketing and International Business University of Winnipeg Canada s. singh@uwinnipeg. ca http: //abem. uwinnipeg. ca www. abem. ca/conference

Why Emerging Markets Now? • No fighting! • More confidence in governance/people/system • Economic reform/free market policies – Tariff/quota ↓, FDI ↑, investors as partners, deregulated industry, privatization of state-owned firms • Sense of market development in EMs – Two market segments (Urban and rural) – First mover advantage/educate customers • Change in culture – Social mobility ↑ demand for expensive products – Buy now, pay later

EM: Eastern Europe • Czech Republic and Poland – Quick to implement free market policies • Hungary and Romania – Slow bureaucrats from communists days • Yugoslavia – Ethnic and religious divisions – Albania, Bosnia • Czech, Hungary, Slovak, Poland OECD – I. e. , accept the obligation to modernize the economies • Baltic states Estonia, Latvia, Lithuania WTO/EU – Quick to move away from soviet-style economies – Drop Rubal, tariff-free, free-market economy

EM: Asia • 4 tigers/dragons HK, S Korea, Taiwan, S’pore – From assembly line to electronics, machines, ship building • Japan is lagging behind – S Korea links with China, USSR, and influences the region • China dual economy socialism/capitalism – By 2015, GNP of China = USA – China now in WTO should follow the WTO rules – Human rights, legal system, corruptions, protectionism • India – free-market economy, > 51% share, no import restrictions – 400 m MIG/HIG, 800 m LIG consumers

Canada’s Relations with the EMs • Canada has good relations with – South America, NAFTA, Africa • Canada’s role in E. Europe is limited • Canada is interested in ASEAN – 4 tigers + Indonesia, Malaysia, Philippines, Thailand • Canada is a member of APEC – Apprehensive in pursuing substantial business due to risks

International Agencies… • Organization For Economic Cooperation and Development (OECD) – Group of developed countries dedicated to promoting economic expansion in its membernations • Organization of Petroleum Exporting Countries (OPEC) – Cartel of 11 petroleum exporting countries • Middle East (6): Iran, Iraq, Kuwait, Qatar, Saudi Arabia and UAE • Africa(3): Algeria, Libya • Other (2): Indonesia and Venezuela Other non OPEC oil exporting countries: UK, Russia, Mexico, Norway

International Agencies • WTO Principles – Trade will be without discrimination – Trade should be freer, with trade barriers negotiated downward – Trade should be predictable – Trade should be more competitive – Trade should be more beneficial for less developed countries, encouraging development and economic reform – protects copyrights, trademarks, trade secrets, and other intellectual property matters – Disagreement on agricultural policies • India, Brazil…

Emerging Markets Trading Blocks • Asia – Association of South. East Asian Nations (ASEAN) – Asia Pacific Economic Cooperation (APEC) • Africa – Economic Council of West African States (ECOWAS) – Common Market for Eastern and Southern Africa (COMESA) • South America – Mercosur (Mercosul)

ASEAN: Asso. Southeast Asian Nations • Free Trade • 10 countries – Brunei, Cambodia, Indonesia, Lao, Malaysia, Mayamar, Philippines, Singapore, Thailand, and Vietnam • HO: Jakarta • ASEAN scholarship • ASEAN Univ. Network

APEC: Asia Pacific Economic Cooperation • Eco. Growth & prosperity – Trade/invst Liberalization – Business Facilitation – Economic/tech cooperation • Important – 40% of world’s pop – 50% of world’s GDP – 40% of world’s trade • 21 countries – Australia, Brunei, Canada, Indonesia, Japan, Korea, Malaysia, NZ, Phil, Singapore, Thai, US, Taipei, HK, china, Mexico, PNG, Chile, Peru, USSR, Vietnam • HO: Singapore

ECOWAS: Economic Council West African States • Economic integration – Mutual defense, court of justice – Ecowas rail, common currency 2015 – Gambia, Ghana, Guinea, Nigeria, Sierra L • 15 countries – Benin, Burkina Faso, Cape Verde Cote d’lvoire, Gambia, Ghana, Guinea. Bissau, Liberia, Mali, Nigeria, Senegal, Sierra Leone, Togo – Niger – suspended 2009– election problem – Guinea – suspended 2008 – coup attempt – Liberia wants to join Ecowas • HO: Abuja, Nigeria

COMESA: Common Mkt for Eastern Southern Africa • Regional economic integration – Trade and investment • 19 countries – Burundi, Comoros, Congo, Djibouti, Egypt, Eretria, Ethiopia, Kenya, Libya, Madagascar, Malawi, Mauritius Rwanda, Seychelles, Sudan, Swaziland Uganda, Zambia, Zimbabwe • HO: Lusaka, Zambia • Branding: Buy African, Build Africa • COMESA statistics

MERCOSUR • Free trade and people movement • Full member – Argentina, Brazil, Paraguay, Urguay Venezuela (Paraguay to ratify) • Associate member – Bolivia, Chile, Columbia, Ecuador Peru • Observer – Mexico • HO: Sao Paula, Brazil