✅CASE STUDY: Trade Blocs

Question 1

When was the EU founded?

Answer 1

1958

Question 2

Why was the EU founded?

Answer 2

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

Question 3

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

Answer 3

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

Question 4

In the 1970s, what impact did EU growth have? (2)

Answer 4

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

Question 5

What global impacts does the EU have? (3)

Answer 5

• 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

Question 6

How does the size of the EU impact its influence? (2)

Answer 6

• Can out-compete other economies
• 1 in 7 jobs in Europe rely on EU trade

Question 7

How does the EU impact travel and migration?

Answer 7

Flow of EU citizens betqeen countries is easy, lack of borders

Question 8

How does the EU create inequality?

Answer 8

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

Question 9

Where is MERCOSUR located?

Answer 9

South America

Question 10

What does MERCOSAUR function as?

Answer 10

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

Question 11

Why was MERCOSUR set up?

Answer 11

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

Question 12

What have MERCOSUR countries agreed to? (3)

Answer 12

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

Question 13

What si the main goal of MERCOSUR?

Answer 13

To standardise regulations between member countries in order to ease commerce

Question 14

How do MERCOSUR countries trade with the wider world?

Answer 14

They have a no of 3rd party trade egreements including Chile, Columbia and Israel

Question 15

Which countries are part of the Pacific Alliance? (4)

Answer 15

Chile
Columbia
Mexico
Peru

Question 16

What is the main goald of the Pacific Alliance?

Answer 16

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

Question 17

What is Pacific Alliance international goal?

Answer 17

To further free trade with a clear orientation towards Asia

Question 18

Which states are ‘observers’ with Pacific Alliance?

Answer 18

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

Question 19

How has Pacific Alliance aided economic growth?

Answer 19

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

Question 20

Which economies are the fastes growing within the Pacific Alliance?

Answer 20

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

Question 21

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

Answer 21

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

Question 22

Visible trade

Answer 22

Trade of goods are exchanged because they can be counted, weighed and given a value - like food

Question 23

Invisible trade

Answer 23

Trade of services are exchanged like tourims

Question 24

How much has trade increased from 1990-2014

Answer 24

60%

Question 25

What do countries outisde the bloc have to do?

Answer 25

Pay an additional tariff to trade with the bloc