✅Case Study - Trade Blocs

Question 1

What is SAARC?

Answer 1

South Asian Association for Regional Cooperation

Question 2

Which countries are involved in SAARC?

Answer 2

Afghanistan,Bangladesh, Bhutan, India, Nepal, Maldives, Pakistan, Sri Lanka

Question 3

What does SAARC promote?

Answer 3

Development of economic and regional integration

Question 4

What are the main objectives of SAARC?

Answer 4

To promote competition in the area and provide equitable benefits for all countries involved as well as increasing trade and economic cooperation

Question 5

How does SAARC provide special preferences?

Answer 5

To the least developed countries, preferences are given to aid development to enhance and support least developed and landlocked countries

Question 6

How has tariff reduction been put into place within SAARC?

Answer 6

A time frame was put in place, with an additional three years for least developed nations, giving them time to still benefit from other countries paying their tariffs

Question 7

How are human resources shared within SAARC?

Answer 7

Shared between countries to improve trade and also the lives of people in each of the countries involved

Question 8

What is NAFTA?

Answer 8

The North American Free Trade Agreement

Question 9

Which countries are part of NAFTA?

Answer 9

USA, Canada, Mexico

Question 10

Why was NAFTA set up?

Answer 10

To eliminate barriers to trade and facilitate cross border movement of goods and services

Question 11

What does NAFTA promote?

Answer 11

Conditions of fair competition, increased investment opportunities and protection

Question 12

What was the time scale on NAFTA’s provisions?

Answer 12

Some implemented immediately, others over the next 15 years.

Question 13

What did NAFTA provide?

Answer 13

Greater equality on import tariffs between the countries

Question 14

How were the economies of the countries within NAFTA impacted?

Answer 14

GDP in all three countries grew by up to 40%, Canadian and US economies more integrated with Mexico

Question 15

When was the EU founded?

Answer 15

1958`

Question 16

Why was the EU founded?

Answer 16

To prevent further conflict between countries after the World Wars, particularly between France and Germany

Question 17

When was the EU single market established and what changes did it bring?

Answer 17

1968, customs tariffs were no longer charged and economic growth was bigger than ever before

Question 18

In the 1970s, what impact did EU growth have?

Answer 18

More and more countries joined and the influence of the EU began to fund development in poorer regions to create jobs and improve infrastructure

Question 19

What global impact does the EU have?

Answer 19

The largest world trade bloc, provides members with free trade with a much larger market than if they were separate.
Provides common front in negotiating trade deals with larger economies eg. US and Russia

Question 20

How does the size of the EU impact its influence?

Answer 20

Its huge market due to combined populations means it can out-compete other economies.
1 in 7 jobs in Europe rely on EU trade

Question 21

How does the EU impact travel and migration?

Answer 21

Flow of EU citizens between countries is easy, lack of borders.

Question 22

How does the EU create inequality?

Answer 22

Fees paid in vs economic gain can be unequal, in 2016 the UK paid in £8.6 billion more than it received back, never been given more than paid in

Question 23

What does EFTA stand for?

Answer 23

The European Free Trade Association

Question 24

Which countries are a part of EFTA?

Answer 24

Iceland, Norway, Lichtenstein, Switzerland

Question 25

Why was EFTA established?

Answer 25

For the progressive elimination of customs duties on industrial products while not affecting agricultural or fisheries products

Question 26

How does EFTA’s trade policy work?

Answer 26

No formal trade policy and members free to trade with any non-EFTA nations, free to make their own deals

Question 27

How has EFTA impacted its members?

Answer 27

Trade has been improved greatly between the member countries as they aim to support each other

Question 28

How do the EU and EFTA overlap?

Answer 28

They work parallel, giving EFTA nations access to the single market and allowing them to still benefit from EU trade despite not being members. EFTA countries also have an open border policy to EU citizens.

Question 29

Where is MERCOSUR located?

Answer 29

South America

Question 30

What does MERCOSUR function as?

Answer 30

A customs union and free trade area with ambitions to become a common market

Question 31

Why was MERCOSUR set up?

Answer 31

During a period when Argentina and Brazil were longtime rivals, it was set up to improve relations through trade

Question 32

What have MERCOSUR countries agreed to?

Answer 32

Eliminating customs duties, implementing a common external tariff of 35% on certain imports from outside the bloc and adopting a common trade policy towards outside countries

Question 33

What is the main goal of MERCOSUR?

Answer 33

To standardise regulations between member countries in order to ease commerce.

Question 34

How do MERCOSUR countries trade with the wider world?

Answer 34

They have a number of third part free trade agreements including with Chile, Colombia and Israel

Question 35

Which countries are part of Pacific Alliance?

Answer 35

Chile Colombia, Mexico and Peru

Question 36

What is the main goal of Pacific Alliance?

Answer 36

To form an area of integration with the purpose of ensuring a complete freedom in the movement of goods, services, capital and people

Question 37

What is Pacific Alliance’s international goal?

Answer 37

To further free trade with a clear orientation towards Asia

Question 38

Which states are ‘observers’ within Pacific Alliance?

Answer 38

54 in total , including economic heavyweights such as Japan, China, Germany, USA and UK.

Question 39

How has Pacific Alliance aided economic growth?

Answer 39

All the countries involved have seen huge economic growth, seeing around 57% of Latin America’s foreign trade and 41% of total investment

Question 40

Which economies are the fastest growing within Pacific Alliance?

Answer 40

Peru and Chile, growth rates of up to 3.7% every year

Question 41

How have Peru’s exports changed since Pacific Alliance formed?

Answer 41

They have increased at an annual rate of 22.6% with an increase of external sale and exports of hydrocarbons, mining and agroindustry sectors

Question 42

What does OPEC stand for?

Answer 42

Organisation of Petroleum Exporting Countries

Question 43

Why was OPEC founded?

Answer 43

To improve communication among petroleum exporting countries as the world recovered from WWII

Question 44

What impact does OPEC have on trade?

Answer 44

As a trade agreement, OPEC has very little impact as all the countries trade the same product but it does control the trade between countries within the agreement and the ones they trade oil with.