access to markets within international trade Flashcards
what does access to markets refer to?
a nation or company’s ability to trade within the international market
how can a countrys access to markets possibly be improved and worsened? why is this?
trade agreements
Some argue that trade
agreements disallow countries within them to trade as well with other countries, which may
negatively affect these countries. One of the reasons that the UK has decided to leave the EU was
that the EU limits trading with other countries, as trading within the EU is obviously encouraged
what is one of the reasons why the uk wanted to leave the EU?
the trade agreement
limits trading with other countries as only trading within the EU is encouraged
why does countries like kenya struggle to get a good price for the food they sell to the EU markets?
due to the tariffs placed on non-EU agricultural produce
as an attempt to protect EU farmers
what is in place to protect spanish farmers?
heavy tariffs placed on african citrus fruit especially south african orange produce which has weakened LICs access to markets
what is a negative about the way trade blocs and agreements function?
many trade blocs and agreements are made up of primarily core regions
meaning they develop quickly and benefit the most, whilst the periphery regions are left with less developed markets and little opportunity to gain access into the market
what are SEZs?
special economic zones
areas within a country that do not have the same trading regulations as the country they are located in
how are the regulation within the SEZs less strict?
lower tariffs and lower taxes
what are SDT agreements and why are they put in place?
Special and Differential Treatment agreements are put in place by the WTO to help specifically developing markets with poor access to markets
what are the special treatments that SDT agreements receive? overall SDTS aims to develop what?
reduced tariffs and taxes, priority in trading etc.
Overall, SDTs aim to develop
the least economically developed countries’ access to markets
how do HICs increase their access to markets?
through FDI into foreign markets, as this allows some countries to save money through cheaper labour and often avoid tariffs
what reduces the LICs access to markets?
they have less wealth
struggle to pay high tariffs
cant save money through offshoring and outsourcing as they dont have the funds
