Types of Liberalization

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Types of Liberalization

• Unilateral liberalization
• Regional liberalization
• European Union
• NAFTA
• APEC
• Multilateral liberalization
• GATT
• WTO

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Example of the European Community

• 15 countries (18 for 2000), one market
• Four Freedoms
• Free movement of goods
• Free movement of persons
• Free movement of services
• Free movement of capital
• Eurocurrency one currency for 11 countries in
  1999 (2002)

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Cultural DimensionsSource Hofstede, 1980, 1991

• Power distance
• the extent to which the less powerful members of
  a society expect and accept that power is
  distributed unequally.
• Individualism
• pertains with societies in which the ties
  between individuals are loose everyone is
  expected to look after himself or herself and his
  or her immediate family.

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• Masculinity
• pertains to societies in which social gender
  roles are clearly distinct men are supposed to
  be assertive, tough, and focused on material
  success, whereas women are supposed to be more
  modest, tender, and concerned with the quality of
  life.
• Uncertainty Avoidance
• the extent to which the members of a culture
  feel threatened by uncertain or unknown
  situations. This feeling is expressed through
  nervous stress and in a need for predictability.

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• Long-Term Orientation
• the extent to which a society exhibits a
  pragmatic future-oriented perspective (fostering
  virtues like perseverance and thrift), rather
  than a conventional historic or short-term point
  of view.

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