Chp 15: Internation trade part 2 Flashcards
Economic integration
growing economic relations and cooperation between countries arising from trade or other agreements that link their economic together
Preferential trade agreements
according to WTO an agreement between 2 or more countries to give preferential access to particular products (access with low or no tariff or other trade protection), often includes additional issues beyond trade such as services investments and intellectual property rights they may be bilateral or regional agreements involve free trade area or customs unions
Trade bloc
2 or more countries that have agreed to reduce or eliminate trade barriers between them
Bilateral trade agreement
an agreement between 2 countries to reduce or eliminate trade barriers to encourage free trade between them
Regional trade agreement
an agreement between several countries in a geographical region to reduce or eliminate trade barriers to encourage free trade between them
Multilateral trade agreement
an agreement between many countries around the world as a rule under the leader ship of WTO to reduce or eliminate trade barriers to encourage trade between them
Free trade area
is a group of countries that have agreed to reduce or eliminate trade barriers to achieve free trade between them. Each country retains the right to impose its own trade barriers towards non-members
Customs unions
is a higher form of integration than free trade area because in addition to free trade between members there is also a common trade policy towards non members
Common market
is a higher form of integration than a customs union because in addition to free trade and common trade policy towards non members there is also free movement of labour and capital between the members
Monetary union
members of a common market adopt a common currency and a common central bank responsible for monetary policies for all members
