2.3 Trading relationships

Question 1

Who are the worlds main trading entities

Answer 1

NAFTA
EU
APEC

Question 2

Why is the US so far behind in trade

Answer 2

They are a protectionist economy

Question 3

What are 2 new trade unions being formed by the US

Answer 3

TPP (trans pacific partnership)
TTIP (trans Atlantic trade and investment partnership)

Question 4

What does the TPP partnership involve

Answer 4

12 countries in NA, SA and Sasia agreeing on trade and environmental standards

Question 5

What does the TTIPP partnership involve

Answer 5

The EU and USA aiming to reduce trade barriers of big business

Question 6

Why do people (NGO’s) opposite TTIPP

Answer 6

Giving more power to TNC’s (they could sue the EU government)

Threatens workers unions
Threatens public services (NHS)

Shared legislation (fracking environmental concerns)

Question 7

Give an example of a country which has had rapid growth in trade

Answer 7

China

Question 8

Give some trading context about china

Answer 8

1964 was one of the poorest members of Group 77
1999 member of G20

Question 9

What is the G20 group

Answer 9

international forum for government/banks of 20 major economies.

Question 10

What is the Group 77 and their aims

Answer 10

group of 77 developing nations with aims of
1. representing worlds poorest economies
2. increasing influence in world affairs

Question 11

Why has china had phenomenal growth and where are they investing

Answer 11

Manufacturing
They invest lots of money into Africa

Question 12

Why don’t people invest in Africa

Answer 12

Wars
Lack of development

Question 13

What have China done in Africa

Answer 13

Extracted resources
Developed infrastructure

Produced food
Developed tourism
Grown trade and investment

Question 14

Give an example of a region which has had rapid growth in trade

Answer 14

Latin America

Question 15

What are the 2 distinct trading blocs of latin America

Answer 15

Pacific allience
Mercosur

Question 16

What is Mercosur

Answer 16

Formed in 1991 allowing free labour movement between the 5 countries.

“the common market of the south”
NA and EU as main targets

Question 17

What is the pacific alliance

Answer 17

Formed In 2011 featuring 4 countries.

NA and Asia as main targets

Question 18

Why is the pacific alliance better than Mercosur and what will happen to them soon

Answer 18

More open to agreements with other nations

They are merging to form a Latin American Union

Question 19

How can developing countries strengthen their trading relationships

Answer 19

Being given SDT’s (Special differential treatment)

Question 20

When was SDT created

Answer 20

Made in 1910 following the decolonisation of ACA countries as protectionist policies were excluding them

Question 21

What are the aims of SDT

Answer 21

Speed up development
Help engage in world trade
Tackle structural difficulties

Question 22

What are the laws of SDT

Answer 22

1. Privileged market access
2. Flexibility with WTO rules
3. The right to restrict imports
4. The right to subsidise exports

Question 23

Give an example of an SDT agreement

Answer 23

The EU’s 2001 “everything but arms agreement” accepted all LDC products

Question 24

What are the advantages of SDT

Answer 24

Lift population out of poverty

Promote development in all s,e,e,p factors

Question 25

What are the disadvantages of SDT

Answer 25

Not all poor countries are WTO members and therefore don’t qualify and instead make their own better agreements

Most countries aren’t aware of all the perks available to them

Cheaper imports flood foreign markets