✅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 did NAFTA provide?

Answer 12

Greater equality on import tariffs between the countries

Question 13

How were the economies of the countries within NAFTA impacted?

Answer 13

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

Question 14

When was the EU founded?

Answer 14

1958`

Question 15

Why was the EU founded?

Answer 15

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

Question 16

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

Answer 16

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

Question 17

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

Answer 17

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 18

What global impact does the EU have?

Answer 18

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 19

How does the size of the EU impact its influence?

Answer 19

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 20

How does the EU impact travel and migration?

Answer 20

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

Question 21

How does the EU create inequality?

Answer 21

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 22

Which economies are the fastest growing within Pacific Alliance?

Answer 22

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

Question 23

What does OPEC stand for?

Answer 23

Organisation of Petroleum Exporting Countries

Question 24

Why was OPEC founded?

Answer 24

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

Question 25

What impact does OPEC have on trade?

Answer 25

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.

Question 26

Pros of trade Blocs

Answer 26

Greater chance of peace w/ member nations
Higher living standards for populations involved due to economic prosperity as trade barriers removed
People seeking work can move freely between countries
Can develop a common currency- less conversion cost in trade

Question 27

Cons of trade blocs

Answer 27

Loss of soverignityt/ centralised decisions
Pressure to adpot centralised decisios
Having to share resources, e.g, UK sharing fishign grounds
Excludes countries in blocs from trading outside bloc and vice versa

Question 28

How were was South Africa’s trade affected by the EU

Answer 28

South Africa’s orange produce ave heavy tariffs on them for EU trade to protect Spanish farmers- protectionism