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Regional Trading


The regional trading
alliances are defined as bilateral trade agreement between partners. These
agreement include costume unions and free trade

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These recent years,
the regional trade alliance shaped the global competition featuring the
European Union (EU), North American Free Trade Agreement (NAFTA), the
Association of Southeast Asian Nations (ASEAN), and even more.


             European Union (EU)


The European Union
(EU) is a political and economic partnership between 27 democratic European
counties. This alliances took in place in 1957 to ameliorate the social and
economic conditions amid it members. The largest enlargement was in 2004 when
the European Union accepted ten new members from Eastern and Southern.  When the twelve original members gathered to
form the

EU in 1992, the first
and essential motivation was to validate and strengthen the position of the
region’s economy against the United States and Japan. Previously, each European
country had border controls, subsidies, taxes; protected industries and nationalistic

The Euro zone is the
largest unified economy after the USA and a great source for the demand of
goods and services globally. Furthermore, this great alliance will evolve as
long as the EU members work with each other to assure the economic power of the
region with success so that the European

 Business still plays an essential role in the
global economy.

There are nowadays,
sixteen counties out of twenty seven who use the euro and most if the new
members will have to adopt it in the future. The only countries which have been
allowed to drop out are the Denmark, Sweden and the United Kingdom.

The Euro zone is the
largest unified economy after the USA and a great source for the demand of
goods and services globally. Furthermore, this great alliance will evolve as
long as the EU members work with each other to assure the economic power of the
region with success so that the European business still play an essential role
in the global economy.



The North American Free Trade Agreement (NAFTA)


North American Free
Trade Agreement (NAFTA) was realized in the 1ST January 1994 and the
primary reason for it creation was to treat in a fair way the practical issue.

It was created to
intermediate between the United States of America, Mexico and Canada in order
to boost and promote the development and investment but to also trade goods and
services among themselves.

Unless other, these
three countries would have involved in fight and disputes over each other’s
tariffs or taxes of the goods imported or exported because this trading would
have affected the price market of the other county.

Additionally, the
agreement was negotiated to not only reduce the conflict between the North
America but to also to help the economy of Mexico so that it expand and raise
the living standards of the Mexican citizen.

The NAFTA lowered the
tariffs and trade restrictions which has been ongoing to 15-years in a certain
key areas.



The Association of Southeast Asian Nations


The Association of
Southeast Asian Nations (ASEAN) features over 10 Southeast Asian nations, these
ten nations are over 591 million population and they communicate in English. These alliance was established  on 8 August 1967 by the ten states which
are Thailand,  Myanmar, Laos,  Indonesia, Malaysia, Singapore, Brunei, Cambodia,  the Philippines,
and Vietnam.

primary goal of it creation was to accelerate the social progress, economic growth,
and socio-cultural evolution between
the members, as well as the provision of a mechanism and the protection of
regional stability.  The member of the
countries try to resolve differences in a peacefully way. ASEAN is an
official United Nations Observer, as well as an
active global partner. ASEAN is recognized as a platform for Asian
cooperation’s and  integrations, by
collaborating with other Asian nations to promote prosperity, unity,
sustainability and development of the region but to also work on solutions to
resolve problems  like  disputes in the region.

organization also helped by establishing communications with the rest of the
world to support world peace and stability.

     ASEAN has a worldwide reputation of
contributing to the diplomacy and goodwill among nations while refusing any
decision and opinion that seems biased. Instead, it is promoting mutual respect
and the principle of non-interference.


1.     Forces in the
environment organization

When a company want to expand its
business and check its strategic position, there are some aspect that need to
be analyzes like the good understanding of the external environment of the
company. I fact, the external environment analysis is compose of economic,
technological, socio-cultural, demographic, political-legal forces that affect
an organization as well as  its task
environment which is also compose of competitors, customers, suppliers and
distributors that influence the industry and the market state.


The technological
forces can modify an organizations in different ways, it impact the firm’s business
operations, employee customers and even its product and services. Technological developments
improve communication, increase leisure time And Information systems,
thus, the company has to be taken in consideration before any action.

Economic environment

The economic environment consists of the broader
economic factors and trends that may influence an organizations performance. It
is divided in two; The Macroeconomic environment, which impact an entire
economy and most of its participants, then there is the microeconomic
environment, which affects the decision making like employee and consumers behavior.
Most of the economic conditions are external which signify that the company
have little or no control over them Constraint On your business. Here are the
factors the influences the economic environment.

ø  Economic development.

ø  Inflation

 Interest rates

Economic growth


Resource and product markets.

Exchange rates.


Socio- cultural

Socio- cultural forces is a set of customs, beliefs, behavior and practices that exists within a population.
Most of the International firms often conduct an analyse of the socio-cultural
environment before entering their target market.  It important to know the values, culture,
habits of the society in which you will oprate your business because they will affect the organization plans.



Demographic environnment


Demographic environnment has to be analysing also to determne whether the
company should expand to that particular country. Hence, the demographic
environnment infliiuences Changes
with population characteristics such as gender, age, race sexual orientation,
ethnic originand social class.

Studying these
factors will help on determining which methods to use
to segment the target populationfor effective marketing.


Political-legal forces


Political-legal environment
are rules and regulations that a government establish in order to control and
limit organizations practices and attitudes. For foreign companies it can become opportunities or threats,
they must understand and respect the laws
related to intellectual property companies, foreign exchange competition, labor,
and so on.

The Government
policies such as monetary, fiscal, industrial, labor export-import police must
also be respected and follow.


The market entry strate

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