CHAPTER 64 TRADING BLOCS Flashcards
Bilateral trade agreement
A regional trade agreement between two countries.
Common market
A customs union where in addition both labour and capital have freedom of movement within the area and where product standards and laws concerning free movement of goods and services are common between countries.
Customs union
A group of countries between which there is free trade in products and which imposes a common external tariff on imported goods from outside the market.
Economic union
A group of countries where the economies of member countries are as fully integrated economically as different regions within a single country; for example, a single market will be combined with a fiscal and monetary union.
Fiscal union
A group of countries where a central body has some powers over government borrowing, government spending and setting uniform rates of taxation in member countries.
Free trade area
A group of countries between which there is free trade in goods and services but where member countries are allowed to set their own level of tariffs against non-member countries.
Monetary union
A group of countries which share a common currency such as the euro.
Multilateral or plurilateral trade agreement
A regional trade agreement between three or more countries or trading blocs.
Preferential trade agreement
A treaty between two or more countries to lower or abolish some protectionist barriers such as tariffs on trade between members.
Preferential trading area
A group of countries that have signed a preferential trade agreement lowering or abolishing some protectionist barriers such as tariffs on trade between themselves.
Regional trade agrement
An agreement between at least two countries to reduce or eliminate tariffs, quotas and other protectionist barriers between themselves.
Trading bloc
A group of countries that have signed an agreement to reduce or eliminate tariffs, quotas and other protectionist barriers between themselves.
