lesson 10- trading relationships and patterns+ lesson 11-international trade and market access Flashcards
what is happening to HIC and NEE shares in world exports?
HIC declining
NEE increasing
what is South-South cooperation?
-example
increase in trade between southern (NEE+NICs)
-this type of trade has increased the most
e.g. China and Africa
what has happened to North North cooperation?
it has decreased rapidly
where is China investing in and why?
what has it lead to?
Africa
-using their raw materials in exchange for improving quality of life, investing in infrastructure while Western countries give direct financial support
-metal demand in Asia has increased, so they invest in areas with metal
->flood of manufactured goods into local markets
->unsafe and unethical working practices
what is intraregional trade
trade within a geographic region
what is a trade bloc?
a type of intergovernmental agreement,where barriers to trade (tarrifs etc) are reduced or eliminated in the participating countries
what is a tariff
a tax imposed by governments on imported goods and services
what is a common market?
members trade freely in all economic resources, not just tangible goods
-no barriers to trade in goods, services, capital and labour
what is a customs union?
tariff barriers are removed between members, and all countries involved have a unified external tariff against non members
-may negotiate as a bloc
what is a free trade area?
several countries may agree to reduce or eliminate trade barriers on all goods entering from other members
what are the two Latin American trading blocs?
Mercosur- formed in 1991-Brazil,Argentina,Uruguay,Paraguay, Venezuela
-allows free movement of labour, main markets are the EU and North America
Pacific alliance-formed in 2011, Chile, Peru, Columbia, Mexico
-more open to making bilateral agreements with other nations
-growing quickly
what happened in the Zambian coal mine, and what is it called?
-collum coal mining industries
2011- 11 African workers were shot by Chinese managers during a protest against poor working conditions
2012- Chinese manager killed during a pay dispute, then the mine was seized by Zambian government
what are the advantages of trade blocs?
-improves global peace and security
-helps members develop
-gives countries a larger voice in world affairs
-having a common currency simplifies transactions
what are the disadvantages of trade blocs?
-loss of sovereignty-decisions are centralised
-loss of financial control
-external countries face further barriers to trading
