4.1.5- trading bloc

Question 1

What is a trading bloc?

Answer 1

Type of intergovernmental agreement to reduce regional trade barriers

Question 2

What is the EU trading bloc?

Answer 2

Agreement between 28 countries, free movement of money, people and goods between the 28 countries

Question 3

What is the ASEAN trading bloc?

Answer 3

Started by Thailand, Malaysia, Philippines and Singapore. Free trade amongst member states

Question 4

What is the NAFTA trading bloc?

Answer 4

Created with the idea of giving USA, Canada and Mexico cheaper goods

Question 5

What does being in a trading bloc enable a business to do?

Answer 5

-access to larger markets
- economies of scale
-enhanced competition

Question 6

Why do some businesses prefer to trade within geographical region?

Answer 6

-cheaper
-cultural ties stronger
-familiar with market

Question 7

What are regional trade agreements?

Answer 7

are made between two or more countries within a geographical region

Question 8

What are drawbacks of belonging to a trade bloc?

Answer 8

• can kill developing countries domestic businesses
  -increase competition
  -limit trade outside of bloc

Question 9

What are 5 types of trading blocs?

Answer 9

-FTA(free trade areas)
-custom union
-single market
-common market
-PTAs(preferential trading areas)