International Trade and Market Integration Principles

International Trade and Market Integration

1. Information Sources for Trade Agreements

Question: Which source of information provides agreements for different countries and products?

Answer: UN Comtrade

2. The Single European Act (SEA) 1986

Question: What is the important step associated with the SEA 1986?

Answer: The creation of the Single Market.

3. The 9 Windows Strategy

Question: The 9 Windows Strategy implies an analysis of what?

Answer: The competition.

4. Consequences of Economic Integration

Question: In the analysis of integration, what are the consequences of further integration?

Answer: More trade and less sovereignty.

5. Barriers to Trade in the EU

Question: There are several barriers to trade; how are they controlled in the EU?

Answer: State aids.

6. Opportunities for Internationalization

Question: The following option indicates an opportunity for internationalization:

Answer: Different cycles of demand.

7. Regional Integration Levels in the EU

Question: Regarding regional integration, what are the current levels of the EU and why?

Answer: Regional integration has different levels: Free Trade Area, Customs Union, Common Market, Economic Union, and Political Union. The European Union currently corresponds mainly to an Economic Union, because it has a Single Market, a Customs Union, and a common currency (the euro) for many member states, although fiscal and political sovereignty remain partly national.

8. CMZ Distributor Model in Turkey

Question: Explain the distributor model of CMZ and the final selection for Turkey.

Answer: CMZ chose a distributor model to enter Turkey to reduce risk, capital commitment, and regulatory complexity. Turkey is a large but volatile market with currency risk and institutional differences; working with a local distributor allowed market access, local knowledge, and flexibility without committing to Foreign Direct Investment (FDI). This choice fits a gradual internationalization strategy.

9. Protectionism and Digital Taxation

Question: Key points to understand taxes on foreign digital platforms and imports.

Answer: This news concerns protectionist measures and digital taxation introduced by the Mexican government. From January 2025, foreign digital platforms such as Temu, Shein, and Amazon must register locally and pay taxes, while imported products—especially textiles from Asia—are subject to high tariffs (up to 35%).

The main concepts include tariffs, non-tariff barriers, digital taxation, and protectionism. These measures aim to protect domestic producers, avoid unfair competition, and increase fiscal revenues.

The foreseeable effects include higher prices for consumers, reduced competitiveness of low-cost Asian imports, incentives for nearshoring or local production, and possible trade tensions with non-FTA countries. In the short term, it protects local industry; in the long term, it may reduce consumer welfare and trade openness.