International Trade & Access to Markets

Question 1

What has evolved overtime?

Answer 1

European Union

Question 2

How was the EU evolved overtime?

Answer 2

From being a simple trade bloc into a multi-governmental organisation

Question 3

What are member states of the EU eligible for?

Answer 3

EU structural funds to help develop their economies

Question 4

How does the EU help cities?

Answer 4

Gain a global reputation by awarding prestigious titles

Question 5

What is the EU the only group of?

Answer 5

Only group of nations that grants all citizens of member states freedom of movement

Question 6

What are free trade areas?

Answer 6

Removal of tariffs and quotas on trade between countries but placing individual restrictions

Question 7

What are customs unions?

Answer 7

Member countries operate on a ‘common policy’ tariff on imports from outside the group.

Question 8

What are common markets?

Answer 8

Similar to customs unions but also allow the free movement of people e.g The EU

Question 9

What are economic unions?

Answer 9

All members must adopt common policies on pollution, transport etc

Question 10

What is interdependance?

Answer 10

The state of being dependent upon one another

Question 11

What does comparative advantage mean?

Answer 11

An economy’s ability to produce a specific good or service at a lower opportunity cost

Question 12

What does economies of scale mean?

Answer 12

Refers to the cost advantages that companies experience as production increases

Question 13

What does protectionism mean?

Answer 13

An economic policy aimed at restricting imports to protect domestic industries from foreign competition

Question 14

What is trade?

Answer 14

Refers to the exchange of goods and services between countries

Question 15

What is FDI?

Answer 15

Foreign Direct investment - an investment made by a company in one country into business interest located in another country.

Question 16

What is international trade?

Answer 16

The import and export of goods and services between countries

Question 17

What has increased dramatically since the 1980s?

Answer 17

The volume of global trade

Question 18

What are 3 negatives of having no trade?

Answer 18

Small national markets
Limited product diversity
High prices

Question 19

What are 3 benefits of having trade?

Answer 19

Increased competition
Economies of scale
Interdependance

Question 20

What increases with trade and what takes place?

Answer 20

Competition and a rationalisation of production

Question 21

What does trade liberalisation involve?

Answer 21

A specialisation of production

Question 22

What does greater economies of scale result in?

Answer 22

Lower prices and higher profits

Question 23

How much as a & was global trade interrupted by when the Suez Canal was blocked in 2021?

Answer 23

12%

Question 24

What are Latin America’s 2 distinct trading blocs?

Answer 24

Mercosur and Pacific Alliance

Question 25

When did Mercosur form?

Answer 25

1991

Question 26

Which is bigger in terms of GDP? Mercosur or Pacific Alliance

Answer 26

Mercosur

Question 27

What does Mercosur comprise of?

Answer 27

Brazil, Uruguay and Paraguay

Question 28

What is Mercosur?

Answer 28

Single market and customs union

Question 29

What is Mercosur called?

Answer 29

The common market of the South

Question 30

What does Mercosur allow?

Answer 30

Free movement of labour between member states

Question 31

What are Mercosur's most exported products? 4 things

Answer 31

Raw materials, energy, mineral and food resources

Question 32

What does the exports enable Mercosur to do?

Answer 32

Trade globally

Question 33

When did Pacific Alliance form?

Answer 33

2011

Question 34

What does Pacific Alliance comprise of?

Answer 34

Chile, Peru, Columbia and Mexico

Question 35

What is Pacific Alliance's combined GDP?

Answer 35

$2.2 Trillion

Question 36

What does Mercosur see as their main market?

Answer 36

Asia-Pacific

Question 37

If the 2 blocs formed as one, who would direct this?

Answer 37

By the intergovernmental body UNASUR

Question 38

What does UNASUR stand for?

Answer 38

Union of South American Nations

Question 39

What is fair trade?

Answer 39

Social movement whose goal is to help producers in LDEs achieve better trading conditions

Question 40

What does fair trade focus on?

Answer 40

Agricultural industry

Question 41

What do fair trade supporters argue?

Answer 41

That those producing the items don't get a deal from the organisations they supply to

Question 42

What do the individual suppliers have?

Answer 42

Little market influence

Question 43

What does the fair trade movement advocate for?

Answer 43

The payment of higher prices to producers aswell as helping socially and environmentally

Question 44

What is free trade's 3 aims?

Answer 44

To increase nations economic growth Trade policies between countries Multi national corporations

Question 45

What is monoculture farming?

Answer 45

A form of agriculture that is based on growing only one type of a crop at one time on a specific field

Question 46

What was the global trade value of bananas in 2016 estimated to be?

Answer 46

$8 billion

Question 47

What does trade create?

Answer 47

Social, economic, political and environment issues worldwide

Question 48

Why are bananas essential in countries like Ecuador?

Answer 48

Essential source of income and employment for many households

Question 49

According to Ecuadorian government, how many jobs does the banana industry generate to the country?

Answer 49

2 million indirect and direct jobs

Question 50

What percentage of Ecuador's exports in value terms is bananas?

Answer 50

10%

Question 51

How is banana production controlled in the Caribbean?

Answer 51

By TNCs and more by small-medium growers on family farms

Question 52

When did the banana dispute start?

Answer 52

1975

Question 53

Why did the banana dispute start?

Answer 53

When EU countries negotiated a trade agreement with former colonies

Question 54

What are 3 environmental impacts on growing bananas?

Answer 54

Reduction in biodiversity Waste - 1 tonne of bananas equals 2 tonnes in waste Reduction in soil fertility due to chemicals