TYPE OF MULTINATINAL MARKET GROUPS AND THEIR ROLE IN

RELAXING BORDER

MD. Omar Faruk Hasib [ID:132011013]Kazi Arafath [ID: 132011063]Madina Islam Protiva [ID:132011114]Israt Tabassum [ID:132011058]Sharmil Ahmed [ID:132011172]

OPEC OPEC is defined as an abbreviation for Organization of

Petroleum Exporting Countries. A union of oil producing countries that regulate the amount

of oil each country is able to produce.

Country    Joined OPEC  Location 

 Algeria   1969   Africa 

 Angola   2007   Africa 

 Ecuador **  rejoined 2007   South America  

IR Iran *  1960   Middle East

  Iraq *  1960   Middle East 

 Kuwait *   1960  Middle East

  Libya   1962  Africa

  Nigeria   1971   Africa

  Qatar  1961  Middle East 

 Saudi Arabia *  1960   Middle East  

United Arab Emirates  1967   Middle East

  Venezuela*  1960   South America

• Headquarters : Vienna, Austria• Official language : English• President : Rostam Ghasemi• Secretary general : Abdallah el-Badri• Currency : USD per barrel• The OPEC Conference: The Conference

generally meets twice a year, in March and September.

• The Heads of Delegation : Representatives are normally the Ministers of Oil, Mines and Energy of Member Countries.

OBJECTIVE Stable oil market, with reasonable prices and steady supplies to

consumers OPEC was made to make sure that the price of the oil in the world

market will be properly controlled. Their main goal is to prevent harmful increase in price of oil in global

market and make sure that nations that produce oil have a fair profit

SIDELINE OBJECTIVE Manipulate supply of oil in the market, in hopes of

keeping prices, and profits, high by producing less oil than the market needs.

While OPEC always wants to maximize profits for themselves, they also don’t want to kill the golden goose by driving prices so high that alternative energy exploration becomes a top priority.

OPEC tracks the oil production of NON-OPEC nations and then adjusts its own production to maintain its desired barrel price.

COMPETITIVE DYNAMICS OF OPEC

Before 1970 No Major Role played by OPEC

During 1970 Power of Price setting shifted from MNC Oil Companies to OPEC

By 1973 OPEC countries changed the Pricing System

1975-1985 Oil Production Increase from 48% to 71%

Mid 1980 Survival became uncertain Market shares fell from 52% 30% in 1985

OIL PRODUCING SCENARIO

OFID was established in January 1976.All non-OPEC developing countries are, in principle, eligible for OFID assistance. However, the least developed and other low-income countries are accorded priority and, therefore, receive a larger share. Over the years, OFID has spread its financing to 134 countries, of which 53 are in Africa, 43 in Asia, 31 in Latin America and the Caribbean, and seven in Europe.

TAXES ON OIL

For example, in the UK the government in 2014 earned about 60.1% of the price charged for every liter of pump fuel sold to consumers. On the other hand, oil producing countries (including OPEC) earned about 29.7% of the total pump fuel price.

THE EUROPEAN UNION

The European Union is a group of countries whose governments work together.

It's like a club. To join you have to agree to follow the rules and in return you get certain

benefits. This group of countries have to pay taxes

but they have benefits. For example, if there is a natural disaster in one of the member countries the others give them

money or also in wars.

WHAT IS THE EU?

How many people live in the EU?

Population in millions (2015)

508 million in total

TIMELINE

THE END OF THE

II WORLD

WAR

TREATY OF ROME

makes the EUROPEAN ECONOMIC

COMMUNITY (EEC)

Common market/ Single

Market

TREATY OF PARIS:

creation of EUROPEAN COAL AND

STEEL COMMUNITY (ECSC)

Euro banknote

s and coins

replaced national

currencies in

member states.

2013

, Cro

atia

be

cam

e th

e 28

th E

U m

embe

r

1945 1951 1957

The European Union was

formally established when the

MAASTRICHT TREATY came

into force setting clear rules for

the future currency

1992 2002

HOW THE EUROPEAN UNION HAS GROWN: ENLARGEMENT: FROM 6 TO 28 COUNTRIES

2004 is the biggest

expansion (enlargement) of the

Union since it started

EU O

BJEC

TIVE

SThe purpose of the EU is protect and strengthen the rights of its members

PoliticalObjective

s

•To promote democracy and freedom in Europea and around the world•To prevent diseases and promote medical research

•To fight cybercrime, terrorism and human trafficking

•To improve working conditions and promotes equal opportunities

Economic Objective

s

•To create jobs and promote economic growth•To develop small businesses and encourage innovation•To act together to help member states with economic problems. •To make it posible for goods, money and services to move freely between countries

THE EUROIt was introduced in 2002 It is a symbol of unity

There are 7 bank notes

The coins have the same design on one side but the other side is country-specific

It is based on a Greek letter. The two bars across the middle are a symbol of stability

8 coins SPANISH €

FRENCH €

SINGLE MARKETIn 1993, the most of the trade

barriers (physical, fiscal, technical) have been...

REMOVED!

GOODS, MONEY, PEOPLE AND

SERVICES COULD MOVE FREELY

ALL GOODS ARE PRODUCED

ACCORDING TO THE SAME

STANDARDS/QUALITY

SO…THIS MAKES THIS MARKET MORE COMPETITIVE

BECAUSE…

All companies are under the same trading

rules and stantardsSO…

SO…

WHAT ADVANTAGES ARE THERE OF BEING

AN EU CITIZEN?

Employment Mobility: FREEDOM TO WORK ANYWHERE WITHIN THE EU.HAVING THE SAME CURRENCY MAKES IT EASIER TO BUY (IMPORT) AND SELL (EXPORT).NO BORDER TAXES.

Residential Mobility: FREEDOM TO LIVE IN OTHER EU COUNTRIES.

As a citizen of the European Union, you deserve all the rights and privileges offered by the country in which you live: Health,

education, unemployment programs, pension...

NETHERLANDS GERMANY BELGIUM

SAFTA-INTRODUCTION An agreement reached on 6 January 2004 at

Islamabad. It created a free trade are between all the

member countries. The SAFTA agreement came into force on 1

January 2006. The purpose of SAFTA is to encourage and

elevate common contract among the countries such as medium and long term contracts.

COUNTRIES IN SAFTA

OBJECTIVES OF SAFTAElimination of trade barriersPromoting conditions of fair

competitionCreation of effective mechanism Framework for regional co-

operation

AGREEMENT OF SAFTAGoodsServicesInvestment

SAFTA-INSTRUMENTS Trade Liberalization Programme Non Tariff Barriers Sensitive List Rules of Origin Special and Differential treatment Provision

for LDC

MERCOSUR

INTRODUCTION "Common Market of the South America" is

the largest trading bloc in South America Its purpose is to promote free trade and

the fluid movement of goods, people, and currency

It also establishes a common trade policy with respect to non-members

MEMBER COUNTRIES Argentina Brazil Paraguay Uruguay Venezuela

Observer Mexico New

Zealand

BOLIVIA JOINING MERCOSUR

OBJECTIVE The free transit of produced goods,

services Eliminate internal barrier Fixing of a common external tariff (CET) Allow free movement of resources

ADMINISTRATIVE/INSTITUTIONAL STRUCTURE OF MERCOSUR

Common Market Council (CMC) Common Market Group ( CMG) Commercial Commission of MERCOSUR

(CCM) Joint Parliamentary Commission (CPS) Social-Economic Consultative Forum (FCES)

BACKGROUND 1991: Treaty of Asunción goes into force in

1991, effectively mandating the creation of a common southern market (MERCOSUR) by December 31, 1994. Original signatories are Brazil, Argentina, Paraguay, and Uruguay

1994: Creation of Mercosur 1995: Creation of customs union. MERCOSUR

and the European Union sign an agreement of trade association and cooperation in various areas

1999: Free trade agreement with two trading block EU and NAFTA

2004: Preferential trade agreement with India

FACTS Population : 0. 3 billion(2010) , 43% of Latin

America’s population Languages : Portuguese, Guaraní and Spanish Combined GNI : $1.1

trillion(2010) ,encompasses roughly 50% of Latin America’s Gross Domestic Product

Land : 7,941,856 sq. miles, 59% of its total landmass

Climate : most types of climate from Arctic to tropical

4th largest trading bloc in the world after EU, NAFTA, ASEAN (2010)

TRADE IN GOODS

THANK YOU!