4.1.5 - TRADE BLOCS Flashcards
1
Q
What is a TRADING BLOC?
A
a TYPE of INTERGOVERNMENTAL AGREEMENT to REDUCE Regional TRADE BARRIERS
2
Q
What are 3 TRADE BLOCS?
A
- EU TRADING BLOC
- ASEAN TRADE BLOC ( Association of SE Asian Nations )
- NAFTA Trading Bloc ( North American Free Trade )
2
Q
What are 3 TRADE BLOCS?
A
- EU TRADING BLOC
- ASEAN TRADE BLOC ( Association of SE Asian Nations )
- NAFTA Trading Bloc ( North American Free Trade )
3
Q
What is the EU TRADE BLOC?
A
- a single market between the 27 member countries
- FREE MOVEMENT of PEOPLE, MONEY, GOODS between countries
- 18 of these countries opted to have the EURO as their currency ( to Stabilise their currency )
3
Q
What is the EU TRADE BLOC?
A
- a single market between the 27 member countries
- FREE MOVEMENT of PEOPLE, MONEY, GOODS between countries
- 18 of these countries opted to have the EURO as their currency ( to Stabilise their currency )
4
Q
What is the ASEAN trading bloc
A
- started by countries to PROMOTE ECONOMIC and SOCIAL GROWTH in the region - has expanded
- has NEGOTIATED a FREE TRADE AGREEMENT among MEMBER STATES and with countries such as CHINA, also has EASED TRAVEL in the Region for CITIZENS of MEMBER COUNTRIES
5
Q
What are the BENEFITS of BELONGING to a FREE TRADE AREA
A
- ACCESS to LARGER MARKETS , EOS by a PRODUCING more and SELLING MORE , ENHANCED COMPETITION and MIGRATION with a Good Supply of Able bodied Workers
6
Q
What are the 4 OPPORTUNITIES of FREE TRADE for a BUSINESS
A
(1) FREEDOM to TRADE ; e,g, French business can Sell Goods Freely Across whole of EU
(2) ENLARGED MARKET - can Mean EOS
(3) PROTECTION FROM INTERNAL COMPETITON OUTSIDE of the BLOC e.g. French business are protected from competition from China
(4) FREEDOM OF MOVEMENT of PEOPLE
7
Q
What are 3 DRAWBACKS of FREE TRADE?
A
- DOMINANCE of DEVELOPED COUNTRIES in GLOBAL TRADING
- can KILL OFF DOMESTIC BUSINESS In DEVELOPING NATIONS
- can REDUCE NATIONAL SOVEREIGNTY or IDENTITY as COUNTRIES become
