4.1.5 Trading Blocs

Question 1

Trading blocs

Answer 1

Partnerships + agreements between nations to allow free trade + collaboration + integration of economic, political + cultural practises

Question 2

Trading agreements

Answer 2

Various different arrangements that exist between countries + regions

Question 3

NAFTA

Answer 3

North American free trade agreement
-free trade zone including trade investment, labour/financial dealing + environmental legislation

Question 4

ASEAN

Answer 4

Association of southeast Asian nations
-free trade agreement between politically, economically and+ culturally diverse countries

Question 5

Eu

Answer 5

European Union
-single market with free movement of people, goods + services.
-the eu also adopts common laws around employment + consumer legislation

Question 6

Benefits of trading blocs

Answer 6

Opportunities to expand into new markets
Allows business to beneift from comparative ad - cheaper + better quality products

Question 7

Drawbacks of trading blocs

Answer 7

Tensions with regions outside of trading bloc
Inefficient producers may be protected leading to poor quality + high prices

Question 8

Customs unions

Answer 8

Low
Involve an agreed set of tariffs against non members

Question 9

Preferential trade areas

Answer 9

Low
Certain products from certain countries

Question 10

Free trade areas

Answer 10

Where there is removal of all trade barriers between countries

Question 11

Common markets

Answer 11

Also free movement of capital
High

Question 12

Single markets

Answer 12

Common laws r adopted to harmonise standards and tax

Question 13

Economic unions

Answer 13

Aim for integration. Of economic, political + cultural factors