FORMING A MULTINATIONAL MARKET GROUP WITHIN SAARC COUNTRIES SAARC (SOUTH ASIAN ASSOCIATION FOR REGIONAL COOPERATION) Bangladesh Bhutan India Myanmar Pakistan Sri lanka Nepal Afghanistan BENEFITS OF COOPERATION
Trade liberalization and regional economic cooperation not only
helps reap economic benefits quickly but also benefits the people of the member states and brings welfare to the life in all respects. • Regional integration enhances trade opportunities in the light of international trade theory. • In international business transportation and geographical factors play a vital role • Due to increased cooperation between neighboring countries the regional block becomes more competitive and gains from both absolute and comparative advantages. TRADE LIBERALIZATION IN SOUTH ASIA FOR SLOW PROGRESS FUTURE POTENTIALS THAT CAN BE ACHIEVED In order for the nations to come forward with more enthusiasm and enhance cooperation they must have something to offer which their other partners would need, be it a product or a service This would provide economic complementarity It would help countries to optimize the benefits which could be derived from the exploitation of latent regional potential. The SAARC nations must integrate their road and rail networks for improved transportation within the zone. Transportation within the region to facilitate exchange of goods since they are geographically in close proximity to each other ABSOLUTE ADVANTAGE A country has an absolute advantage in the production of a product when it is more efficient than any other country in producing it. Each of the SAARC countries has absolute advantage in the production on certain goods. The ability to produce the goods and services at the cheapest possible price in comparison to the other nations has given the nations absolute advantage Bangladesh has natural advantage in shrimp, coal, natural gas, limestone, kaolin and alluvial clay, glass sand, construction stones and mineral sand. Bangladesh has acquired advantage in clothing, cotton and cotton products, rice, carpets and leather goods. Sri Lanka has natural advantage in limestone, graphite, mineral sands, gems, phosphates, clay, pearls and hydro power. Bangladesh acquired advantage in aqua fish, aqua culture and sea food, coconut and coconut products, handicrafts,