Types of Elections in Texas

Types of Elections in Texas Michael Dean Jalal Nejad, Ph.D. The election process is a staple of American politics, though on the national level it only applies to the Presidency and Congressional elections. In Texas though, citizen vote for all three branches of states government offices. There are three main types of elections in Texas, the primary election, general election, and special elections. The primary elections are held on the second Tuesday in March of even-numbered years (Champagne Harpham 135). They are the first step in the electoral cycle, the primaries are used to determine the political parties candidate for the general election. There are three other types of primaries which are the runoff, open, and closed. The runoff primary is when a no candidate wins by majority. When a runoff primary happens if a Democrat voted in the regular primary they cannot in the Republican runoff primary, if there is one. The same goes for Republicans trying to vote in a Democratic runoff. An open primary is where a registered voter can vote for either party, it doesnt matter their affiliation. However, they cannot vote in both primaries. The last type is a closed primary in which one must vote for their registered party. This works by having the voter declare their party before voting. Though voters need to declare their affiliations before voting, it does not bind them to voting f or that specific party in future elections. The next type of election is the general election. The general election is held the first Tuesday following the first Monday in November of even-number years (Champagne Harpham 136). During the general election the main candidate of both parties run against each other for certain offices. The major officials such as governor and attorney general are elected during years that the presidential election is not occurring. Though most of the time it is the main two parties, Republican and Democrat, sometimes third part or independent candidate run as well. Other elections for smaller offices such as school boards, city councils, and local positions are held usually in the beginning of November (Champagne Harpham 136). The last type of major election is special elections. Special elections are used to fill empty official positions, approval of borrowing large sums of money, and amending the Texas Constitution (Champagne Harpham 136). The specific dates for these elections are made by the legislature of Texas. An example of this would be if a Texas Congressman resigns or gets fired, the governor would have to call a special election to fill the void left by their resignation. Another example would be if the Texas legislature wanted to amend the Texas Constitution they would first have to propose the amendment, the voters would have a special election to actually ratify it into the Constitution. To summarize there are three main types of elections in Texas. There is the primary election where nominees of each party go against each other to see who will represent the party in the general election. The primary elections are held on the second Tuesday in March of even-numbered years. The next type of election would be the general election. In the general election the nominees of the Democratic and Republic parties face off to see who will gain the specific office they are going for. Though the general election focuses on the two main parties, there are usually third party or independent candidates running against them as well. The general elections for major offices are held the first Tuesday following the first Monday in November of even-number years, where the minor offices get elected earlier in November. The last type of election is the special election, these kinds of election take place when there is a vacancy in office, a large loan needs to be taken, or an amendment to the Texas Constitution is proposed. Work Cited Champagne, Anthony, and Edward J. Harpham. Governing Texas:. New York: W.W. Norton Company, 2013. Print.

Arctic Power Case Study Essay -- GCSE Business Marketing Coursework

Arctic Power Case Study CURRENT SITUATION It is the summer of 1987. Arctic Power laundry detergent has contracted with the consulting firm of Smith and Jones, LTD to assist Arctic Power in determining their strategic direction and their product positioning. BACKGROUND AND HISTORY Arctic Power, a laundry detergent specially formulated to clean in cold water, is part of Colgate-Palmolive Canada family of products. Colgate-Palmolive Canada is a wholly owned subsidiary of the multinational corporation Colgate Palmolive. In 1986 Colgate-Palmolive had worldwide sales of $4.9 billion with profits of $178 million, with Colgate-Palmolive Canada having sales of $250 million. Colgate-Palmolive Canada (CPC) has a wide variety of household and personal care products. Among the most popular CPC brands are ABC, Arctic Power, and Fab laundry detergents, Palmolive dish soap, Ajax and Irish Spring body soaps, Ultra Brite and Colgate toothpaste, and Baggies storage bags. Colgate-Palmolive Canada uses a product management system in which product managers are assigned specific responsibility for a specific brand such as Arctic Power. Their overall goals are to increase sales and profitability of their brands. The project manager is responsible for all the marketing functions, including planning, advertising, selling, promotion, and market research. An assistant product manager is assigned to work with the product manager. Prior to the late 1970’s Colgate-Palmolive Canada supported their brands on a national basis, then changed strategy as CPC realized they were spreading their resources too thin. During the late 1970’s through the early 1980’s, CPC shifted to a regional strategy. While Arctic Power was still distributed nationally, by the end of 1981, its share of the Canadian national market was 4% (consisting of an 11% share in Quebec, 5% in the Maritimes, and 2% elsewhere in Canada). As a result, Arctic Power was heavily marketed in Quebec and the Maritimes, with promotion support being withdrawn from the rest of Canada. This regional approach was successful as Arctic Power’s share of the overall Canadian market increased to 6.4% in 1985, capturing 18% of Quebec, 6% of the Maritime markets while dropping to less than 2% elsewhere in Canada. 1986-87: THE WESTERN CAMPAIGN With the success Arctic Power had in their regional strategy, Arctic Power launched a campai... ...tegies. Budget Despite facing cutthroat competition that has seen the cost of goods sold rise 15% during the past three years and prices rise only 5%, Arctic Power should be able to continue to have an 18% contribution margin for its sales dollars. Our primary budget strategy would be to reduce costs and promotion expenses, while increasing the use of cheaper television and radio advertising. This would allow Arctic Power to increase brand awareness as well as promote the benefits of cold water washing. Arctic Power will also look to new cost saving technologies and other measures to assure profitability over the long run. 14 YEARS LATER: THE CONCLUSION The year is 2001. Through the efforts of Smith and Jones, LTD’s marketing strategy, Arctic Power is the leading cold water laundry detergent in Canada and has expanded internationally. The 1987 Arctic Power campaign will be widely studied by MBA students from Palm Desert, California to Palm Beach, Florida as one of the great marketing success stories. Spiel and Dimick, LTD, will later go on to help some nerdy Bill Gates kid market this unique idea of his called Windows while assisting Al Gore in his new invention, the Internet.

An Analysis of Margaret Atwoods Siren Song Essay examples -- Siren So

An Analysis of Margaret Atwood's Siren Song Throughout her many years as a poet, Margaret Atwood has dealt with a variety of subjects within the spectrum of relationship dynamics and the way men and women behave in romantic association. In much of her poetry, Atwood has addressed the topics of female subjugation in correlation with male domination, individual dynamics, and even female domination over males within the invisible boundaries of romantic relationships. With every poem written, Atwood's method for conveying the message of the poem has remained cryptic. She uses a variety of poetic devices - sometimes layered quite thickly - to communicate those themes dealing with human emotion. In the poem, Siren Song, Margaret Atwood employs such devices as imagery and tone to express and comment on the role of the dominating "siren" that some women choose to play in their relationships.   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  "Siren Song" opens with the feel that the reader has just walked into a story being told by the speaker. It even seems to give the effect of literally walking a few moments late into a storytelling session. In this particular session, the speaker seems to be a woman portraying herself as a siren of ancient Greek lore. In literature, these mythological beings are most frequently described as creatures with the face of a woman and the feathered body of a bird, cursed to exist as such by the goddess Demeter. They were cursed for having stood by during the kidnapping of Demeter's daughter Persephone, when Hades whisked her away to the underworld. The sirens supposedly lived on a series of rocky islands and, with the irresistible charm of their songs, they lured mariners to their destruction on the rocks surrounding the islands. The ima... ... with them without denying herself the right to exist on her own terms. She does not fear her own nature, and she is not afraid to play the dominant role. Being a siren, though, means never truly getting close to anyone - victims do not last long - and so, on some level, her words must be double-edged. She may not be afraid and she may not regret the so-called deaths of these men, but she does seem to regret the death of something else. Perhaps this something else is her own heart, now seemingly incapable of 'normal' sentiment. This siren may not only be a portrait of a specific female role in romantic relationships, but she may also be a form of commentary on that role. The siren may also be seen as a depiction of the loneliness that stems from toying with the human heart. With her song, she provides a warning to the readers about the fate that follows such games.

Arthur’s Journey to Self Discovery :: essays papers

Arthur’s Journey to Self Discovery The future is inevitable. It is only with experience that one can come to an understanding of any sort. It is only with time that experience can become achievable. Understanding one’s true self can only be made possible with a multitude of experiences, leading to realizations. The entire package of experiences for one individual person can take no less that a lifetime. This reality, in itself, is a tragedy. A tragedy that Arthur, King of Camelot, was destined to realize. Born into a life of deception, even the truth about his maternal origin is kept from him. Innocent and naà ¯ve, Arthur as a young man succeeds in doing what no other could do before. He pulls from a stone the sword named Excalibur. Long before his birth, his father declared that whoever could remove the sword was to be king. Unsure and not at all confident in his abilities, Arthur’s strength and will as king is tested almost immediately. With the help of his sword, Excalibur, he wins a fight against Uriens’ men and saves the castle of another king. Arthur earns his first taste of victory. Accompanying this victory, is the respect of the people within his kingdom. While attempting to cross a bridge, Arthur meets a man who refuses to respect his authority and clear the way across the bridge. Arthur’s â€Å"rage unbalances him†. He agrees to fight to the death over the crossing of a bridge that can easily be traveled around. Arthur’s opponent outmatches him. Arthur is forced to call upon the power of his sword, Excalibur. Arthur is victorious, but in the process, Excalibur is broken. â€Å"[His] pride broke that which could not be broken.† Arthur is remorseful and refers to himself as â€Å"nothing†. It is with this first display of condescension that Arthur realizes that especially because of his stature, his personal mistakes and poor decisions could affect many lives other than his own. Adding an element of contrast to Arthur’s life is Arthur’s friend and mentor, Merlin. As a seer of the future and a man of great intelligence and wisdom, Merlin is everything Arthur is no. Arthur looks to Merlin for guidance. Through Merlin, the king’s many great possessions are put into perspective.

Motivating your employees Essay

Being in the military, but more importantly being a leader for 10 out of my 12 years of military experience, I understand the importance of motivating â€Å"employees†. Most leaders understand that motivating employees not only improves their way of life, but also increases productivity, and in the long run, benefits the company. Motivating employees is not necessarily a difficult task; however, most leaders neglect the techniques discussed in Mr. Weiss’ article due to their personal beliefs. I fully agree with Mr. Weiss’ article on building morale, motivating and empowering employees. His methods are especially helpful and used quite often in the military world although they are titled a bit differently. Personally, I have used the methods Mr. Weiss describes in his article for as long as I have been a leader. As a leader, my philosophy has always been that in order to be a successful leader, you have to lead by example. I feel that Mr. Weiss expresses this point of view in his major means of motivating identification. As stated in the article, identification is â€Å"when a person adopts a behavior associated with others†. In the military, that is called leading by example. As a leader, you should want your employees to adopt your behavior. I do not believe that people come into a job wanting to make mistakes. Therefore, the tendency of an employee is to do as his or her leader would do. Therefore, as a leader, leading by example is detrimental to your gaining the confidence and respect of your employees. You must set the standards and enforce them. Yet another idea Mr. Weiss mentions is to â€Å"avoid favoritism†. I believe that you must treat all people equally. Whether they are abiding by, or violating the standards you have set, you must reward them or reprimand them equally. That is not to say that the rewards and or reprimands should be the same for every infraction. I simply believe that you must be fair and impartial when giving rewards or punishments regardless of how long you may have known an employee, or what the employee’s position is in the company. The military is famous (or infamous) for their use of acronyms. In the military we use acronyms for just about anything you can imagine. So, in keeping true to military form, I created my own acronym to remind myself of  the methods required in motivating my â€Å"employees†. This acronyms helps me remember that in order to be a leader, you must â€Å"Be, Know, and Do†. Be responsible for yourself and your subordinates; Know your subordinates and look out for their well being; Do as you want your employees to do. The acronym I use is â€Å"BASICS†, because in leadership, you should always â€Å"stick to the â€Å"basics†Ã¢â‚¬ . B – Be a leader. When in charge take charge PERIOD. A – Account for your actions and those of your subordinates. Know what you and your subordinates are doing or have done at all times. S – Seek responsibility and take responsibility for your actions. If a mistake is made, do not try to pawn off the results of your decisions or actions as someone else’s fault. Take ownership of the situation, good or bad. I – Inform your subordinates. Try to talk to them everyday. Employees want to know what’s going on–knowledge is power. This way, you can ensure they fully understand what is required of them, solicit feedback, and provide encouragement if needed. Also, if an issue arises during the feedback always look into it immediately and get back with the employee. C – Consistency is essential. Employees will work harder if they know what to expect from the leader. As a leader you must provide purpose, direction, and motivation. Ensure your employees know what they have to do, when they have to do it, and that you are going to support their actions consistently. S – Sensitive leadership inspires success. You have to truly know your employees, and show a genuine concern for them, not only for their needs, but their families as well. I have always believed, â€Å"employees don’t care how much you know, until they know how much you care†. In conclusion, I believe that Mr. Weiss has an outstanding motivation improvement program. His motivational methods could offer tremendous results  for companies who are having difficulty keeping their employees motivated. The bottom line is, in order to be a good leader you have to listen to the needs of your subordinates. A leader must â€Å"Be, Know, and Do†. Be responsible for yourself and your subordinates; Know your subordinates and look out for their well being; Do as you want your employees to do. And last but not least, always â€Å"stick to the â€Å"BASICS†Ã¢â‚¬ .

Marketing †Brand Essay

1. Executive Summary This report provides an analysis of the international marketing environment of fast- food industry in US and evaluates the international marketing activities of McDonald’s, which is considered a key player. Firstly, the PEST framework is used to analyse external environmental factors influencing the industry. The Porter’s Five Forces framework is utilised to analyse the competitive rivalry within the industry, and its attractiveness for potential new entrants. Key players and their positioning was identified using a strategic-groups model, mapping brand value against global presence. Based on the industry analysis, McDonald’s was identified as the market leader and an examination of their market entry modes was carried out. Their international marketing mix was evaluated to identify success factors, drawing focus upon international branding, international distribution, international communications and standardisation vs. adaptation of the service offering. An internal analysis identified the firm’s strengths and weaknesses whilst an external analysis considered the opportunities and threats posed to McDonald’s as market leader. Finally, short and long term strategic and tactical recommendations were outlined in order to enhance McDonald’s competitive position within the global fast-food industry. These recommendations are both realistic and well supported, based upon the evaluation of their current strategy and activities. 3 2. Introduction The global fast-food industry is dynamic with a variety of competitors. This report identifies the current factors influencing the industry before specifically focusing on McDonald’s Corporation, who is considered as the current global leader. Based on this analysis, the report identifies several areas for improvement and makes strategic recommendations for McDonald’s to enhance its position. 4 3. International Marketing Analysis? 3. 1. PEST Analysis and Environmental Impact Matrix (Macro Environment) The following framework provides an analysis of the external international marketing environment, relating to the fast-food industry: *These ratings are based on the authors’ subjective judgement 5 Political Global fast-food firms must comply with country-specific political requirements, such as national minimum wage regulations, affecting costs. Hygiene and quality regulations vary significantly between nations and may influence the quality of products provided by fast-food outlets (FDA, 2012). Different countries set varying regulations regarding labelling and packaging. For instance the UK government pressured firms to promote healthy eating, and several fast-food companies have voluntarily included calorie information on their products (BBC, 2011). Economic Despite the 2008 recession and the resulting decrease in consumer confidence across the globe, average consumer fast-food spending has increased (The Economist, 2010) due to convenience and low-cost. Consumers are still looking for the convenience of eating out, but are drawn to the low prices of fast-food over table-service restaurants (Financial Times, 2009). Many fast-food chains have capitalised upon the recession by introducing new deals in addition to their already low-priced menus. Between 2005 and 2010, Latin America, Asia Pacific, Eastern Europe and Russia accounted for 89% of global growth in the fast-food industry (Passport, 2012). Social Increasing consumer awareness about healthy lifestyles has pressured many fast-food players to offer healthier selections within their menus (BBC, 2011). This includes offering low- calorie options and salads alongside burgers, and prominently displaying nutritional content. The fast-food industry has also been heavily criticised for targeting young children by including toys within children’s meals (New York Times, 2003). Recently in the UK, the broadcasting of ‘junk food’ adverts during commercial breaks in children’s programmes has been banned (BBC, 2007), following increasing childhood obesity. 6 Technological As consumer familiarity with new technology increases, fast-food firms are using channels such as social media websites to engage with their customers. For example, McDonald’s is the 9th most ‘liked’ brand on Facebook (CNBC, 2012) (Appendix 1). Additionally, digital displays allow outlets to change their menus efficiently, to suit the time of day (NRA, 2012) and self-service ordering points have increased service speed and reduced labour costs. Environmental Environmental lobbyists and governments are pressuring the fast-food firms to become more ‘green’ (Greenpeace, 2012). Rainforests are being destroyed to increase the area of land for beef production to meet the demand for beef-burgers (Kline, 2007). Recycling is a prominent global issue and in response, McDonald’s adopted recyclable packaging. Increased environmental awareness among consumers provides firms with a significant opportunity to position themselves as ‘green’ to garner customer loyalty (National Pollution Prevention Centre for Higher Education, 1995). Legal Global operators must comply with country-specific regulations and legislation. This includes opening hours, taxation and employment regulations such as the National Minimum Wage Regulations (1999) in the UK. Firms are often required to meet national food standards such as the requirements set out by the US Food and Drug Administration (FDA). Furthermore, authorities are becoming increasingly worried about childhood obesity associated with the industry (WHO, 2012) and have tightened regulations regarding targeting children. 7 3. 2. Porter’s Five Forces – Fast-food Industry This framework identifies the competitive forces affecting the fast-food industry: THREAT OF NEW ENTRANTS Industry dominated by global chains with very high brand values High brand awareness and loyalty. Retaliation from strong incumbent players Low initial capital outlay Low fixed costs Economies of scale POWER OF SUPPLIERS Many undifferentiated suppliers Fast-food chains have high purchasing power due to high volume COMPETITIVE RIVALRY IN THE FAST-FOOD INDUSTRY Fragmented market Low exit costs Low margin, high turnover – drives competition High brand power POWER OF BUYERS High product differentiation Target many segments High price sensitivity THREAT OF SUBSTITUTIONS Alternative foodservice options Ready meals and home cooking ingredients Main players quite differentiated No switching costs. Convenience is the value adding component which is difficult to substitute 8 Threat of New Entrants – Moderate The industry is dominated by a number of international Quick Service Restaurant (QSR) chains, including McDonald’s, Burger King, Pizza Hut, KFC and Domino’s (Datamonitor, 2010). These global brands are extremely valuable, boasting strong customer loyalty and recognition; indicating consistent quality and service. Key players including McDonald’s, adapt their marketing orientation to suit local cultures and social norms (Datamonitor 2010), strengthening the brand and avoiding consumer alienation. New players struggle to compete with incumbent firms, as their brands are unknown and advertising campaigns are expensive. Established chains have the resources to retaliate aggressively through pricing promotions, deterring new players from entering the marketplace. New entrants lack economies of scale, which existing chains have developed over time, and utilise to remain competitive in this low-margin, high-turnover industry. However, social media websites have evened the playing field in terms of marketing communications; they allow firms to efficiently communicate their message inexpensively. Initial capital outlay and fixed costs are low, encouraging new entrants (Datamonitor, 2012). Threat of Substitutions – Moderate Substitutes are readily available: food can be purchased almost anywhere, through foodservice or retail. However, convenience is the value-adding component of the service which reduces the threat of substitutes. Consumers can cook at home cheaply, but this lacks the convenience element which people require nowadays. Ready-meals are therefore a more substantial threat, competing with fast-food on price as well as convenience. (Datamonitor, 2012). If you are ‘on-the-go’ however, without access to a microwave, QSRs are almost uncontested if you want a hot meal in a short timeframe. With many differentiated players (Datamonitor, 2012) and varying service offerings, customers can select the best value option. 9 Competitive Rivalry – Strong Although McDonald’s and Burger King almost hold a duopoly in the ‘burger segment’, the market as a whole is fragmented with many global chains and independent operators (Datamonitor, 2012). Competition is primarily cost-based with firms continuously investing in their production and service processes to undercut competitors. Exit costs are low and capacity is easily increased through franchising. Branding is the most prevalent weapon for competing; McDonald’s spent over $650 million on global advertising in 2009 (Datamonitor, 2012). Power of Buyers – Moderate Figure 1 shows sales and growth of the top ten fast-food companies (Euromonitor International, 2012). The market’s competitiveness increases buyer power and customers are price sensitive (Muhlbacker et al., 1999) with no switching cost between providers. However, key players attempt to reduce buyer power, offering a product range which caters for the entire demographic, rather than one specific segment. For example, McDonald’s target children with ‘Happy Meals’ and professionals with breakfast options and take-away coffee (McDonald’s, 2012). Firms are increasingly promoting differentiated products: McDonald’s â€Å"Big Mac†, Burger King’s â€Å"Whopper† and offers such as Domino’s â€Å"Two for Tuesday† campaign. High brand value and customer loyalty has reduced buyers’ bargaining power. The 2011 ranking of the top 100 brands indicates McDonald’s’ success (Interbrand, 2011). 10 Power of Suppliers – Moderate Figure 1: Top Ten Fast-food Companies by Growth. With a competitive global supply chain, supplier power is limited. â€Å"17,500 British and Irish farms that provide us with top-quality ingredients. † (McDonald’s – UK, 2012) These farms supply Tier 1 suppliers who transform raw materials into food items, ready for McDonald’s to cook and serve. Due to the number of suppliers in the industry, it is difficult for them to leverage significant power over fast-food firms. The supply of soft-drink is dominated by Coca-Cola (McDonald’s and Burger King) and Pepsi (KFC) due to their global distribution channels. Additionally, Coca-Cola and Pepsi provide fast-food chains with equipment such as refrigerators and drink dispensers. This markets their brand and aligns it with fast-food brands, reducing costs for customers, which would otherwise be passed onto them (SMO, 2011). 11 3. 3. Identification of Key Players and their Competitive Position 3. 3. 1. Strategic Groups The following framework identifies the key players in the international fast-food industry and identifies which firms are in the most direct competition with each other: Brand value and the chain’s global presence (Appendix 2) are significant indicators of overall performance. The above strategy-group chart maps the firms’ performance. Brand value (US$) is plotted against the chain’s global presence, in terms of the number of outlets worldwide. The strategy-grouping shows that McDonald’s has the 12 highest global market value and revenue in the industry, despite Subway having more international outlets. 4. Key Player – Evaluation of International Activities 4. 1. Identification of Key Player Based upon their global presence, market value and revenue, McDonald’s is identified as the key player in the industry. 4. 2. McDonald’s International Market Entry Modes In 1940, McDonald’s operated only one QSR but today has restaurants at 33,000 locations in 119 countries. McDonald’s utilises a variety of international market entry modes for rapid expansion: sole ventures, franchising, master franchising and joint ventures. 15% of McDonald’s branded restaurants are operated as sole ventures. This involves a significant capital commitment but allows the highest degree of control.? Most restaurants are operated as franchises, allowing rapid expansion without high capital requirements. Franchising has also allowed McDonald’s to benefit from local knowledge, demonstrated by the menu differences by country. However, McDonald’s maintains control over crucial aspects such as the supply chain, marketing mix and staff training. Master Franchising introduces a third party as a ‘go-between’ to overcome geographical and cultural barriers. The combination of the master franchisee’s local knowledge and McDonald’s brand and model has been a successful formula, allowing expansion whilst maintaining significant control. McDonald’s has also expanded internationally through joint ventures. Again, this allows for rapid expansion and utilises the knowledge of firms in closely-linked markets. Since 13 Both firms invest equity in the project, there is a lower financial risk for both parties; however, many joint ventures end in hostility and conflict due to firms taking advantage of one another (Brown and Harwood, 2010).

An Exploration Of The Traditional Customs Union Theory And The Static And Dynamic Effects Of Economic Integration

Introduction The benefits gained from regional integration are widely documented in literature and have been known since the time of classical economists (Oslington, 2013). Regional integration has become the subject of great interest due to the perceived benefits of preferential trade arrangements such as customs union, free trade area, and common market among many others.This paper will focus explicitly on customs unions, exploring the traditional customs union theory introduced by prof. Jacob Viner. The paper starts by defining customs union and then examines Viner’s framework of trade creation and trade-diversion effects. It is important to first define customs union and introduce the theory of customs union. In general, tariff systems often tend to discriminate either between commodities or between countries. Commodity discrimination occurs where different commodities are subjected to different rates of duty whereas country discrimination occurs where different countries are subjected to different rates of duty on the same commodity (Lipsey, 1960). The theory of customs union is defined by the latter part which involves geographical discrimination by imposition of external tariffs to imports from non-member states. As defined by (Clausing, 2000), a customs union is a form of preferential trade arrangement that involves a tariff-free market access between member countries while imports from non-member countries are subjected to a common external tariff. Customs union have for a long time formed the basis for regional integration. This has primarily been driven by the perceived trade benefits for having such trade agreements between member countries. Some of the best-known customs unions include the Benelux formed by Belgium, Luxembourg and Netherlands; Zollverein which was formed by German states; and the EEC which was established by several states including France, Belgium and Italy, and is now widely recognized as the EU (Strielkowski, 2013). Other examples of customs unions are the Mercosur and the Andean Community (Hannam, 2014). Viner’s framework of trade creation and trade-diversion effects. Any useful literature exploring the welfare effects of custom union formation must commence with the appreciation of the traditional Vinerian orthodoxy which is based on two important considerations: trade creation and trade diversion effects. The Vinerian orthodoxy has been the driving force behind the huge volume of literature exploring the welfare effects of economic integration. For a long time, the perceived trade gains of customs unions had provided the rationale for regional integration (Jovanovic, 1998). Such regional agreements were viewed as good in terms of the welfare benefits. However, following the work of Viner Jacob, this proposition turned out to be incorrect. Using the concepts of trade creation and trade diversion, Jacob Viner argued that regional trade agreements did not necessarily result trade gains in spite of elimination of trade barriers (Ambrego & Riezman 2003; Lipsey 2006). Suppose that two countries A and B agree to form a customs union with country C remaining outside the union. If prior to the formation of customs union, country A was importing from country C which is a low cost producer. With the union formed, A chooses to import from country B which is a high cost producer. In this case, the welfare is lowered despite the benefits of a tariff-free market as trade is diverted from a low cost producer to a high cost producer (Ambrego & Riezman 2003; Lipsey 2006). However, if a union was formed between A and C, then trade will be created and the welfare will increase. Using these static concepts, Professor Viner concluded that such regional agreements can only be beneficial to partner countries if it leads to trade in commodities which were not previously traded (trade creation) (Corden, 1972). Whereas if the union was trade diverting by shifting locus of production from low-cost third country to higher-cost partner country, then the effects are most likely to be detrimental for both partner countries and the rest of the world as well (Chipman, 1998 & Lipsey, 2006). Since the publication of his seminal work in 1950, many economists have been interested in pursuing the impact of these two effects on world welfare. His work has been the driving force behind later subsequent literature examining the impact of regional trade agreements on welfare. Subsequent empirical work Much of the empirical literature on customs union formation has been motivated by the work of Viner (1950). Prior to Vinerian orthodoxy, it had been customary to recognize customs union as always increasing welfare. The classical economic theory behind the formation customs union was the presumption that higher degree of economic integration was beneficial (Jonavonic 1998). Customs union formation was viewed as a step closer to free trade liberalization hence was seen as increasing world welfare. Viner’s seminal contributions proved this argument to be incorrect. However, Viner’s seminal contributions were challenged by Meade (1955) on grounds that the orthodoxy overlooked some of the benefits resulting in trade-diverting unions such as the benefits arising from substitution in consumption (Chipman, 1998). Lipsey (1957) and Gehrels (1956) criticized the Viner’s work over the same issue. These authors argued that preference considerations had to be taken into account when making determinations of the welfare gains and losses (Chipman, 1998). Dissatisfaction with the Vinerian orthodoxy led to the development of other approaches that yielded clear propositions including the general theory of the second best and the terms of trade-volume approach. It is important to note that the traditional Vinerian orthodoxy was based on two simplifying assumptions: Constant costs of production (Nicholls, 1993) Fixed proportions in consumptions (Nicholls, 1993). Meade (1956), Lipsey (1957) and Gehrels (1956) extended Viner’s basic model by relaxing the assumption of zero price elasticity’s of demand (Lee, 1978: p.248). This allowed for the determination of welfare effects with consideration of the changes in composition of consumption. Kemp (1969), Michaely (1965) and Vanek (1965) relaxed the assumption of constant costs. What is missing from traditional customs union theory? Besides these limitations, the traditional Vinerian orthodoxy seem to be missing important dynamic aspects which are crucial in determination of the welfare effect. The traditional customs union theory seems to concentrate more on trade creation and trade diversion effects that are likely to be trivial, ignoring those that are crucial in determining the net gains/losses from integration. Pro-competitive effect One particular aspect missing is the pro-competitive effect. For example, many small countries will tend to have a few large firms that may collude and raise prices at the expense of consumers. Forming customs union and ensuring a tariff free market will increase the degree of competition and force domestic firms to price more in line with marginal cost (Jovanovic, 1998). This pro-competitive effect will encourage them to reduce inefficiency and force them to price in line with marginal costs, thereby leading reducing the prices to consumers. This pro-competitive effect make it increasingly difficult for these firms to charge margins in excess of marginal costs (Josic & Josic, 2013) In this regard, Baldwin & Venables (1995) emphasize the importance of pro-competitive effect and even suggest that regional integration amplifies the pro-competitive effect compared to global integration. Formation of customs union create a large market and subjects producers to new forms of competition. Increase in competition forces the firms to be reduce the levels of x-inefficiency and to price in line with marginal cost in order to gain a new market share. Economies of scale Another criticism of the traditional customs union theory lies in its failure to allow for economies of scale (Corden, 1972). Viner’s analysis fails to incorporate the effect of economies of scale. It is a fact that regional integration leads to the formation of larger markets which allows firms to exploit greater economies of scale. Customs union formation will therefore lead to the exploitation of greater economies of scale, thereby driving down the costs. With the tariff barriers removed, nationally-scaled firms may benefit greater economies of scale from the larger single market created (Cakmak & Yilmaz, 2008). Economies of scale will allow these union producers to achieve an optimum scale of production, increase their efficiencies and decrease the average production costs as well as the prices to consumers (Ginsberg, 2010: 95) Technology spill overs Yet another aspect missing in the traditional customs union theory are the larger effects of technological advances. The productivity and innovative abilities of nationally scaled firms may further be enhanced by technology spillovers (Cakmak & Yilmaz, 2008). Research and development programs may help in improving technological innovations. There is a greater potential for technological innovation where such unions exist. Accumulation or growth effects Furthermore, given that integration leads to increased efficiency, it is also more likely to induce greater investment. This additional investment may lead to medium-term growth effect in some countries and can even improve long-run growth rates where the additional investment is associated with faster technical progress (Josie & Josie, 2013). From an investment perspective, foreign direct investment will be particularly important in boosting domestic growth. Arguments for and agents removing all tariffs Indeed there appears to be a number of justifiable reasons for customs union formation. A member country’s welfare as well as the world’s welfare can be raised if tariffs are reduced under such customs unions. However, the greatest benefits would be achieved by complete removal of the tariffs compared to mere reduction of these tariffs. The removal of all trade barriers will without doubt yield significant benefits in terms of reducing monopoly power, improving terms of trade, increasing efficiency, and improving technological innovations through technology spill-overs among many others. In fact, customs union theory fails to justify or rather explain the need for customs union formation since complete removal of all trade barriers could have all the benefits without incurring potential losses associated with joining customs unions (Jovanovic, 1998). The welfare of a member country is less likely to be raised by a mere reduction in tariffs compared to complete removal. A free trade agreement would therefore tend to have more welfare benefits than a customs union since trade creation is merely dependent on removal of tariff barriers (Clausing, 2000). However, Krueger (1997) points out that free trade agreements may not necessarily yield greater benefits than a customs union and even argues that it can generate additional welfare costs which would otherwise not have been incurred under a customs union. In fact, Krueger (1997) argues that a customs union will always remain superior to a free trade agreement. This points to the need for further analysis of the benefits and costs associated with Free trade agreements and customs unions formation. Conclusion Based on this analysis, this paper concludes that the static concepts of trade creation and diversion cannot appropriately measure the welfare effects of regional integration. Even though Viner seminal contributions points out that consumer welfare may increase due to tariff reductions while welfare cost may accrue from tariff discrimination of customs union, these static effects are trivial when considering the welfare effects of integration. The traditional customs union theory seem to ignore dynamic effects that are crucial in determining the net gains/losses from integration such as the pro-competitive effect, growth effect, economies of scale, and reduction of x-inefficiencies and monopoly power among many others A prime example can be seen with the European Union, a single market that has had important consequences both within and outside Europe. Following the EU’s single market program, there is now a greater awareness of the importance of formation of customs union and of the value of removing tariff barriers. The EU is not only the largest single importer and exporter, but is also the world’s largest and richest economic entity (Ginsberg, 2010: p.96). The gains associated with joining the union far outweigh the economic risks/costs. The EU is currently planning to expand its reach other European nations. Preferential trading agreements seem to be growing more rapidly, both in size and number. 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