The OPEC Reference Basket (ORB), also referred to as the OPEC Basket, is a weighted average of prices for petroleum blends produced by OPEC countries. It is used as an important benchmark for crude oil prices
The European Union (EU) is the world's largest exporter. With over 500 million consumers, a single market with common rules, it also represents an attractive export market for non-EU countries. The EU has exclusive power to legislate on trade matters and to conclude international trade agreements, based on World Trade Organization rules, on behalf of its 28 member countries. Its policy covers trade in goods and services but also matters such as commercial aspects of intellectual property and foreign direct investment. It has enacted trade defense and market access instruments mainly with the purpose of protecting EU businesses from obstacles to trade. Lastly, it assists developing countries to trade by means of lower duties and support programmes.
removal of barriers to trade in goods & services among themselves. Common external tariff – imports from non-members are subject to the same tariff when sold to any member country.
Mercosur comprises five member countries—Argentina, Brazil, Paraguay, Uruguay, and Venezuela—and Bolivia is in the final stages of the accession to become the sixth member. Known as Mercosur in Spanish or Mercosul in Portuguese, the group encompasses 295 million people and has a combined GDP of nearly $3.5 trillion.
Associates and Observers One of Latin America’s largest regional integration projects, Mercosur also counts Chile, Colombia, Ecuador, Guyana, Peru, and Suriname serve as associate members.
The free transit of produced goods, services and factors among the member states Among other things, this includes the elimination of customs rights and lifting of nontariff restrictions on the transit of goods or any other measures with similar effects Fixing of a common external tariff (CET) Move member countries’ economies away from import-substitution models Develop institutional groups
Common Market Council (CMC):The Council is the highest-level agency of MERCOSUR with authority to conduct its policy, and responsibility for compliance with the objects and time frames set forth in the Asuncion
Common Market Group ( CMG):basic duties are to cause compliance with the Asuncion Treaty and to take resolutions required for implementation of the decisions made by the Council. Furthermore, it can initiate practical measures for trade opening, coordination of macroeconomic policies, and negotiation of agreements with non-member states and international agencies, participating when need be in resolution of controversies under MERCOSUR
Commercial Commission of MERCOSUR (CCM):assists the Common Market Group in the enforcement of trade policies Joint Parliamentary Commission (CPS):The Committee will have both an advisory and decision-making nature, with powers to submit proposals as well Social-Economic Consultative Forum (FCES):brings together various associations and interest groups from member countries
Multinational markets groups
TYPE OF MULTINATINAL MARKET
GROUPS AND THEIR ROLE IN RELAXING
MD. Omar Faruk Hasib [ID:132011013]
Kazi Arafath [ID: 132011063]
Madina Islam Protiva [ID:132011114]
Israt Tabassum [ID:132011058]
Sharmil Ahmed [ID:132011172]
OPEC is defined as an abbreviation for Organization of Petroleum
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.
Stable oil market, with reasonable prices and steady supplies to
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
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
No Major Role played by OPEC
Power of Price setting shifted from MNC Oil Companies to OPEC
OPEC countries changed the Pricing System
Oil Production Increase from 48% to 71%
Survival became uncertain
Market shares fell from 52% 30% in 1985
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
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 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
508 million in total
1945 1951 1957
Union was formally
TREATY came into
force setting clear
rules for the future
HOW THE EUROPEAN UNION
HAS GROWN: ENLARGEMENT: FROM 6 TO 28 COUNTRIES
2004 is the
) of the Union
EUOBJECTIVES The purpose of the EU is protect and strengthen the rights of its
•To promote democracy and freedom in Europea
and around the world
•To prevent diseases and promote medical
•To fight cybercrime, terrorism and human
•To improve working conditions and promotes
•To create jobs and promote economic
•To develop small businesses and encourage
•To act together to help member states with
•To make it posible for goods, money and
services to move freely between countries
It was introduced in 2002
It is a symbol of unity
There are 7
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
In 1993, the most of the trade
barriers (physical, fiscal, technical)
ALL GOODS ARE
ACCORDING TO THE
SO…THIS MAKES THIS MARKET
All companies are under
the same trading rules
WHAT ADVANTAGES ARE THERE OF BEING AN
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...
An agreement reached on 6 January 2004 at
It created a free trade are between all the member
The SAFTA agreement came into force on 1
The purpose of SAFTA is to encourage and elevate
common contract among the countries such as
medium and long term contracts.
"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
The free transit of produced goods, services
Eliminate internal barrier
Fixing of a common external tariff (CET)
Allow free movement of resources
Common Market Council (CMC)
Common Market Group ( CMG)
Commercial Commission of MERCOSUR (CCM)
Joint Parliamentary Commission (CPS)
Social-Economic Consultative Forum (FCES)
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
2004: Preferential trade agreement with India
Population : 0. 3 billion(2010) , 43% of Latin
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
Climate : most types of climate from Arctic to
4th largest trading bloc in the world after EU,
NAFTA, ASEAN (2010)