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MGT520 - International Business - Lecture Handout 39

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The Case for Regional Integration:

  1. The economic case for integration has been largely presented in the previous chapters. Free trade and movement of goods, services, capital, and factors of production allow for the most efficient use of resources. That is positive sum game, as all countries can benefit.
  2. Regional economic integration is an attempt to go beyond the limitations of WTO. While it is hard for 100 countries to agree on something, (e.g.. the United Nations) it is much more likely that only a few countries with close proximity and common interests will be able to agree to even fewer restrictions on the flows between their countries.
  3. The political case for integration has two main points: 1) by linking countries together, making them more dependent on each other, and forming a structure where they regularly have to interact, the likelihood of violent conflict and war will decrease. 2) by linking countries together, they have greater clout and are politically much stronger in dealing with other nations.
  4. In the case of the EU, both a desire to decrease the likelihood of another world war and an interest in being strong enough to stand up to the US and USSR were factors in its creation.
  5. There are two main impediments to integration: 1) there are always painful adjustments, and groups that are likely to be directly hurt by integration will lobby hard to prevent losses, 2) concerns about loss of sovereignty and control over domestic interests. Canada has always been concerned about being dominated by its southern neighbor, and Britain is very hesitant to give much control to European bureaucrats (as of this writing it still has not adopted the euro).
  6. The case on NAFTA and the US Textile Industry shows that although the effects of NAFTA have hurt employment in the US textile industry, the overall effect has actually been positive. The reason: clothing prices have fallen, exports have increased, and sales to apparel factories have surged. Those factors more than compensate for the loss of jobs.

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MGT601 - SME Management - Lecture Handout 41

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Trade Related aspects of Intellectual Property Rights (TRIPS)

As a member of the WTO, Pakistan is committed to fulfilling TRIPs obligations. Copyrights piracy is considered very high, affecting imported computer software, videos, films and textile designs. Pakistan like developing countries was given deadline of January1, 2000 (i.e. five year period) to bring into conformity with the WTO commitment. List copyrights laws etc. Pakistan is not yet fully ready to implement its commitment.

In Pakistan, five laws/amendments have been promulgated, to provide intellectual property protection under WTO standards.

  1. Patents Ordinance, 2002
  2. Trademarks Ordinance, 2001
  3. Copyrights Amendments Ordinance, 2000.
  4. Industrial Designs Ordinance, 2000.
  5. Registration of Layout Designs of Integrated Circuits Ordinance, 2000.

In Industrial economies, intellectual property laws are regulated under a single umbrella organization to reduce the regulatory impediments that discouraged entrepreneurs from compliance with regulations. In Pakistan, all three areas (Copyrights, trademarks and patents) are managed separately by different federal ministries, i.e. Ministry of Education (copyrights), Ministry of commerce (trademarks) and Ministry of Industries & Production (Patents). There is urgency for enforcement of the laws promulgated regarding infringement of IPRs for which necessary rules should be farmed and notified a priority basis.

Read more: MGT601 - SME Management - Lecture Handout 41