✅CASE STUDY: Trade Blocs Flashcards
When was the EU founded?
1958
Why was the EU founded?
o prevent further conflict between countries after the World Wars, particularly between France and Germany
When was the EU single market established and what changes did it bring?
1968
Customs tariffs were no longer charged and economic growth was bigger than ever before
In the 1970s, what impact did EU growth have? (2)
- More and more countries joined
- Influence of the EU began to fund development in poorer regions to create jobs and improve infrastructure
What global impacts does the EU have? (3)
- The largest wolrd trade bloc
- Provides members with free trade witha much larger market than if they were seperate
- Provides common front in negotiating trade deals with larger economies e.g US and Russia
How does the size of the EU impact its influence? (2)
- Can out-compete other economies
- 1 in 7 jobs in Europe rely on EU trade
How does the EU impact travel and migration?
Flow of EU citizens betqeen countries is easy, lack of borders
How does the EU create inequality?
Fees paid in VS economic gain can be unequal.
E.G in 2016 the UK paid in £8.6 billion more than it recieved back, never been given more than paid in
Where is MERCOSUR located?
South America
What does MERCOSAUR function as?
A customs union and free trade area with ambitions to become a common market
Why was MERCOSUR set up?
During a period when Argentina and Brazil were longtime rivals, it was set up tto improve relations through trade
What have MERCOSUR countries agreed to? (3)
Eliminating customs duties
Implementing a common external tariff of 35% on certain imports from outside the bloc
Adopting a common trade policy towards outside countries
What si the main goal of MERCOSUR?
To standardise regulations between member countries in order to ease commerce
How do MERCOSUR countries trade with the wider world?
They have a no of 3rd party trade egreements including Chile, Columbia and Israel
Which countries are part of the Pacific Alliance? (4)
Chile
Columbia
Mexico
Peru
What is the main goald of the Pacific Alliance?
To form an area of integration with the purpose of ensuring complete freedom in the movement of goods, services, and people
What is Pacific Alliance international goal?
To further free trade with a clear orientation towards Asia
Which states are ‘observers’ with Pacific Alliance?
54 in total, including economic heavyweights such as Japan, China, Germany, USA and UK
How has Pacific Alliance aided economic growth?
All the countries involved have seen huge economic growth, seeing around 57% of Latin America’s foreign trade and 41% of total investment
Which economies are the fastes growing within the Pacific Alliance?
Peru and Chile, grwoth rates of up to 3.7% every year
How have Peru’s exports changed since Pacific Alliance formed?
They have increased at an annual rate of 22.6% with an increase of external sale of hydrocarbins, mining and agroindustry sectors
Visible trade
Trade of goods are exchanged because they can be counted, weighed and given a value - like food
Invisible trade
Trade of services are exchanged like tourims
How much has trade increased from 1990-2014
60%
What do countries outisde the bloc have to do?
Pay an additional tariff to trade with the bloc
