Groupings Flashcards
When did global groupings occur and why (Groupings globalisation)
After the second world war, when the 1st 2nd and 3rd worlds arose
Who were those on high incomes and what was their economy like? (Groupings globalisation)
USA and Europe
Consistently dominated global economies
Who were those on higher middle incomes and what was their economy like? (Groupings globalisation)
Japan and India
High growth with emerging economies
Who were those on lower middle incomes and what was their economy like? (Groupings globalisation)
Russia
Have mass natural resources and sustained growth
Who were those on low incomes and what was their economy like? (Groupings globalisation)
Africa
Stagnation and declining economy
What three ways can countries improve their economy, when forming alliances? (Groupings globalisation)
- Free trade areas
- Common markets
- Economic unions
How do free trade areas work and give an example? (Groupings globalisation)
No tariffs or quotas on trade between themselves, but restrictions on others
e.g NAFTA
How do common markets work and give an example? (Groupings globalisation)
Same as trade areas but also allow the movement of labour and capital
e.g how the EU use to be
How do economic unions work and give an example? (Groupings globalisation)
Same as common markets but also adopt the same policies on agriculture, transport, pollution, industry and energy
e.g the current EU
What is NAFTA and who is involved? (Groupings globalisation)
North American free trade agreement
e.g Canada, Mexico and US
What process is breaking down the geographical barriers, allowing information to flow in a fluid way? (Groupings globalisation)
Digital technology
What is an issue with the rise in digital technology? (Groupings globalisation)
Homogenisation
What are the benefits of trade blocs? (Groupings globalisation)
+ no tariffs
+ ease of trading
+ less conflict
What are the negatives of trade blocs? (Groupings globalisation)
- Some trade restrictions
- Richer nations ‘bail out’ poorer ones
- Centrally made decisions
