Free trade blocs Flashcards
What is a trade bloc?
A type of intergovernmental agreement where trade barriers are reduced among participating states
What are 3 advantages of trade blocs?
Protection from foreign competitors
National firms can merge to form TNCs
Bigger markets but no extra taxes
Why is the protection from foreign competitors an advantage for trade blocs?
Domestic manufacturers are protected
What is an example of protection from foreign competitors within a trade bloc?
In 2007, the EU blocked £50 million of Chinese clothes from entering the UK
What is an example of the merging of 2 national firms to form a TNC and what was the result?
In 2000, Vodaphone merged with Germany’s Mannesmann to become the world’s largest telecommunications company
What was the population of the EU (including the UK)?
515 million
What is the population of the UK?
65 million
Which UK company benefitted from a larger EU market?
Tesco
What are 2 disadvantages of trade blocs?
Loss of sovereignty
Interdependence
Apart from trade, what does the EU also deal with in its member states?
Human rights
Greenhouse gas emissions
Consumer protection
How does interdependence within trade blocs make member states vulnerable?
A disruption of trade within a trading bloc may have severe economic consequences for all member states
When did the EU establish its own currency?
2002
How many members does the EU have?
27 members
How many members does ASEAN (Association of Southeast Asian Nations) have?
10 members
When was ASEAN established?
1967
