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

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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
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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
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