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B) ECAs within countries support the expansion of local exports. Multilateral agencies provide informational and financial assistance to support export activities in countries that lack the resources to do it themselves. 1 v01/20/99 p02/12/99 THE TRADE ENVIRONMENT 1-29 þ PROGRESS CHECK 1 (Continued) Question 14: In emerging market countries, when private capital cannot be raised for large infrastructure improvement projects, governments may obtain marketrate funding from the: _____ a) local export credit agency.

The Conference of Contracting Parties makes decisions on questions requiring a resolution of the members. The Secretariat performs technical and administrative duties. Export Credit and Multilateral Agencies Direct and indirect government involvement Commercial banks are not the only entities involved in financing world trade and economic development. Governments participate in these activities, both directly through their own national organizations (export credit agencies) and indirectly through their membership in a variety of international economic organizations (multilateral agencies).

The consumer and productivity potential for member countries is significant. MERCOSUR is modeled after the European Community (EC) and, if successful, will encompass a geographical area that is twice the size of the EC. Chile became an associate MERCOSUR member in early 1996. Peru, Ecuador, Venezuela, Colombia, and Bolivia have agreed to start talks to link the Pacto Andino with MERCOSUR. 1 1-10 THE TRADE ENVIRONMENT Pacto Andino (Andean Pact) Peru, Ecuador, Colombia, Chile, Bolivia, and Venezuela The third agreement that influences Latin American trade is the Pacto Andino (Andean Pact).

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