Lesson 10: GLOBAL MARKETING IN THE 21ST CENTURY
The Global Economy – World trade has grown sixteenfold since 1950, far outstripping the growth in GDP. GATT and WTO have helped to reduce tariffs from 40 percent in 1947 to an estimated 4 percent in 2000. As the WTO replaced GATT in 1996, the major challenge was to assure compliance and to assert the authority of the WTO over powerful regional trade agreements like the European Union (EU), the North American Free Trade Agreement (NAFTA), the Common Market of the South (MERCOSUR), and the Asian-Pacific Economic Cooperation (APEC). There are over eighty regional agreements between countries granting preferential access to each other’s markets. Thus understanding the economics of trade is critical to understanding that the need for free trade flows from country to country.