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Archive for April, 2013

States Resources

In addition, loss of tariff revenue, which are transferred to domestic consumers, who now pay one lower price, and the producers of the partner country that exports, which sell their production at a higher price than the International is verified. The replacement of socially less expensive production of the rest of the world by the inefficient partner, giving rise to a transfer of tariff income to producers from that country, is known as diversion of trade. The formation of a common market leverage comparative and advantages derived from different relative endowments of factors and different requirements of raw materials to produce each good. Widest range of final goods available to consumers, what represents an increase in their welfare; increased competition that involves, among other things, higher quality of goods and services, lower prices and a more efficient allocation of resources; an important saving of resources initially allocated to the Customs dealings; better allocation of intra regional resources; reduction of the costs of transport and communication for the physical integration of the States. Strengthens relations trade, political, scientific, academic, cultural, etc., all which departs considerably the possibility of conflicts between countries (a clear example of this is reflected between the existing rivalry between Brazil and Argentina, which lasted for decades). Disadvantages the conformation of MERCOSUR advanced by two parallel routes and not necessarily had the same dynamic: on the one hand was the automatic and progressive reduction of tariffs and non-tariff barriers to trade; on the other was the harmonization of macroeconomic and sectoral policies that have no automaticity and requires agreement, negotiations and commitments from Governments. Policy coordination not only consists of the abstention by the Governments to implement certain national policies, but it implies, In addition, take joint measures to eliminate asymmetries between different economies (usually caused by Government actions or malformations of market), which put in inequality to producers from different countries.

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