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INTRODUCTION
Many aspects are changing the way business is done around the world, such as: the globalization of the economy, technological advances or the formation of economic blocs. International market opening is a growing force in the global economy that benefits all countries of the world. Regional trading blocs like the EU, NAFTA, ASEAN or MERCOSUR have been formed around the world.
The creation of MERCOSUR (Mercado Común del Sur) can be regarded as a response Latin Americas' to the new challenges of the world economy. Its conception is clearly inspired by the role model of the European Union.
1 HISTORICAL BACKGROUND
1.1 ALALC
In the 50s, Latin America was already beginning to take its first steps towards regional integration.
MERCOSUR is the culmination of the process that begun with the signing of a treaty in 1960 that created the Latin American Free Trade Association (ALALC). The goal behind this treaty was to create a free trade zone in Latin America. Unfortunately, the goal could not be realized during the 1970's, when most of the member states were military dictatorships.
Though not achieved, the dream of a Latin American free trade zone had survived.
1.2 ALADI
In 1980, the Latin American Integration Association (ALADI) was formed by the Treaty of Montevideo to replace ALALC.
This association used other means to attempt member state integration. ALADI was to provide a Latin American umbrella under which smaller regional organizations could cooperate. The intent behind the new association was not to create a free trade zone, rather to first establish an economic preference area among the member count ...