Chapter 3 - Pearson Learning Solutions

88 PART 2 • THE GLOBAL MARKETING ENVIRONMENTMercosur, not the customs union.) Chile’s export-driven success makes it a role model forthe rest of Latin America as well as Central and Eastern Europe. In 2004 Mercosur signed acooperation agreement with the Andean Community; as a result, Bolivia, Colombia, Ecuador,and Peru have also become associate members. Venezuela became a full Mercosur member in2006. The EU is Mercosur’s number one trading partner; Mercosur has signed an agreementwith the EU to establish a free trade area. Germany and France are opposed to such an agreementon the grounds that low-cost agricultural exports from South America will harm farmersin Europe.Caribbean Community and Common Market (CARICOM)CARICOM was formed in 1973 as a movement toward unity in the Caribbean. It replaced theCaribbean Free Trade Association (CARIFTA) founded in 1965. The members are Antigua andBarbuda, Bahamas, Barbados, Belize, Dominica, Grenada, Guyana, Haiti, Jamaica, Montserrat,St. Kitts and Nevis, St. Lucia, St. Vincent and the Grenadines, Suriname, and Trinidadand Tobago. The population of the entire 15-member CARICOM is about 15 million; disparatelevels of economic development can be seen by comparing GNI per capita in Dominica andGrenada with that of Haiti (see Table 3-8).To date, CARICOM’s main objective has been to achieve a deepening of economic integrationby means of a Caribbean common market. However, CARICOM was largely stagnant during its firsttwo decades of existence. At its annual meeting in July 1991, member countries agreed to speedintegration; a customs union was established with common external tariffs. At the 1998 summitmeeting, leaders from the 15 countries agreed to move quickly to establish an economic union witha common currency. A recent study of the issue has suggested, however, that the limited extent ofintraregional trade would limit the potential gains from lower transaction costs. 10TABLE 3-8 CARICOM Income and Population2006 GNI(in millions)2006 Population(in thousands)2006 GNIper CapitaAntigua and Barbuda $929 84 $11,050Bahamas 4,684 327 15,100Barbados na 293 naBelize 1,114 298 3,740Dominica 262 72 3,670Grenada 397 108 3,750Guyana 849 739 1,150Haiti 4,044 9,446 430Jamaica 9,504 2,667 3,560Montserrat na na naSt. Kitts and Nevis 326 48 6,980St. Lucia 684 166 4,180St. Vincent and Grenadines 403 120 3,400Suriname 1,918 455 4,210Trinidad and Tobago 16,612 1,328 12,500Total/Mean GNI per capita $33,788 15,006 $2,293* , a*Indicates meana Excludes Barbados and MontserratSource: Reprinted by permission of Warren Keegan Associates, Inc.10 Myrvin L. Anthony and Andrew Hughes Hallett, “Is the Case for Economic and Monetary Union in the CaribbeanRealistic?” World Economy 23, no. 1 (January 2000), pp. 119–144.000200010270740623Global Marketing, Sixth Edition, by Warren J. Keegan and Mark C. Green. Copyright © 2011 by Warren J. Keegan. Published by Prentice Hall.