4.1.5 Trading blocs and the WTO

Question 1

what is a regional trading bloc, give 2 examples

Answer 1

a regional trading bloc is a group of countries within a geographica region that protect themselves from imports from non-members. they sign an agreement to reduce/eliminate tariffs, quotas and other protectionist barriers among themselves.

-USMCA, EU

Question 2

what are the 5 different types of trading blocs, in order of economic integration

Answer 2

-PTA- preferential trading areas

-FTA free trade areas

-customs union

-common markets

-monetary unions

Question 3

what is a free trade area, give an example

Answer 3

these occur when 2 or more countries in a region agree to reduce or eliminate trade barriers on all goods coming from other members.

-they have a common internal trade agreement
-they have an uncommon external trade agreement

-an example of a fta is the USMCA