4.1.5 Trading Blocs

Question 1

What is a trading bloc?

Answer 1

A trading bloc is a type of intergovernmental agreement to reduce regional trade barriers.

Question 2

What does ASEAN stand for?

Answer 2

Association of Southeast Asian Nations

Question 3

What does NAFTA stand for?

Answer 3

North American Free Trade Area

Question 4

What is the expansion of a trading bloc?

Answer 4

The process of more countries joining an existing trade bloc, thereby making it expand.

Question 5

Define free trade

Answer 5

Trade that takes place between countries without protectionism

Question 6

What are the opportunities of free trade

Answer 6

1.) Freedom to trade; e.g. selling goods + services freely.
2.) Enlarged market; e.g. the size of the market for British goods is now 499 million people —> EOS.
3.) Protection from international competition outside of the BLOC; e.g. UK businesses are protected from comp from China.
4.) Freedom of movement of people; UK firms can employ talented ppl from across Europe.

Question 7

What are the drawbacks of free trade?

Answer 7

-Dominance of developed countries in global trading.
-It can kill of domestic businesses in developing nations.
-Can reduce national sovereignty or identity as countries become standardised, westernised + McDonaldized.