External Influences - International trade and free trade Flashcards
1
Q
Explain what is meant by a trading bloc?
A
a group of countries within a particular geographical region that have reduced or removed trade barriers for its member countries
2
Q
what are the advantages of trading blocs?
A
- cheaper and quicker trade
- increased labour and skills (free movement)
- allows specialisation
- increased investment
- stronger political relations
- lower production costs
- innovation/knowledge sharing
3
Q
what are the disadvantages of trading blocs?
A
- limits international trade
- may reduce domestic trade/markets
- over reliance on other countries
- fee of being in a bloc
- increased competition
- benefits may not be equally distributed
