international trade and access to markets Flashcards
why are investments mainly concerned w HICS investing in LICS
due to profits that can be made from lower labour costs
which country is the world’s largest exporter
china
which areas are poorer and may experience economic leakage
peripheral areas
advantages of trade agreements
no taxes on products - cheaper
increased trade
move freely w in bloc
disadvantages of trade agreements
more difficult - have to pay extra £ to trade w countries outside bloc
what does access to markets mean
a countries ability to trade w in a global market
have emerging economies become increasingly involved w trade in the last 20 yrs
yes
what is a free trade area
no barriers between member countries, each member country maintains tarrif against non-member countries
what is a customs union
same as free trade area but member countries impose common tariff against non-member countries not in bloc
what is a common market
allows free flow of goods, services and capital
what is the ASEAN
Association of Southeast Asian Countries
negatives of trade agreements/blocs
made up mainly of core regions which benefit the most
periphery regions are left w less developed markets
what are Special Economic Zones
areas w in a country that don’t have the same trading
regulations as the country they are located in
what are the regulations like in SEZs
less strict, lower tariffs and taxes
where are hqs of TNCS usually located
HICS
