4.1.5 Trading Blocs

Question 1

Common market? example?

Answer 1

market where goods, labour and capital move freely across states - no tariffs
ASEAN

Question 2

Customs Union? example?

Answer 2

union of states that remove all trade barriers between them and adopt barriers between non members
CARICOM

Question 3

Economic or Monetary union?

Answer 3

economic union that uses common currency

Question 4

Economic union? examples?

Answer 4

type of trading bloc with customs union and common market

EU

Question 5

Free Trade area?

Answer 5

region where members remove all trade barriers but keep different barriers with non members

Question 6

Preferential trading area?

Answer 6

trading bloc where certain types of products from countries receive reduced tariffs

Question 7

Regional trade agreement?

Answer 7

agreement between 2 or more countries designed to facilitate trade by bringing down barriers

Question 8

Trading Bloc?

Answer 8

group of countries that have signed regional trade agreement to reduce tariffs and quotas

Question 9

4 things to consider in trading blocs?

Answer 9

Where to produce, Where to sell, How to enter a market, Business strategy

Question 10

3 opportunities for a business with trading blocs?

Answer 10

improve capital flow for firms
firms benefit from economies of scale
resources easier to source and labour easier to recruit

Question 11

What does ASEAN stand for?

Answer 11

the trade between South East Asia

Question 12

What does NAFTA stand for?

Answer 12

The North American Free Trade Agreement

Question 13

3 drawbacks for business with trading blocs?

Answer 13

smaller businesses face huge competition
harm overall trade - competitive advantage
could cause political/social tension