Theme 4 - 4.1.5 - Trading Blocs Flashcards
What is a trading block ?
A trading bloc is a type of intergovernmental agreement between countries to reduce protectionism such as tariffs and quotas - how closely the members wish to integrate their economies depends on what form of trading bloc they make such as free trade areas, custom unions and full economic union where there are no tariffs or quotas.
UK is part of the EU trading Bloc
How much countries are in the EU trading bloc ?
27 countries because UK left
What are some of the details of the EU trading bloc ?
The EU is a single marketplace between the 28 member countries —> there is free movement of people( travel ), money, goods and services between all 28 countries therefore no tariffs etc
19 of these countries also use the Euro as their currency ( to stabilise their currency ) this is called the Eurozone
What is Brexit and how did it impact on the UK ?
Brexit means leaving the EU trading Bloc
This means now the UK would have to operate under World Trade Organisation ( WTO ) rules which could mean customs checks and tariffs on goods as well as longer border check for travelers
What is Brexit and how did it impact on the UK ?
Brexit means leaving the EU trading Bloc
This means now the UK would have to operate under World Trade Organisation ( WTO ) rules which could mean customs checks and tariffs on goods as well as longer border check for travelers
Whats hard brexit / soft Brexit and what does it mean ?
It means that the Uk would really cut off all connections with EU and make tariffs for everything but soft Brexit is where you have no tariffs - however this means that the uk would have to make payments into the EU budget
Whats the ASEAN trading Bloc ?
Association of Southeast Asian Nations
- Thailand
- Philippines
- Malaysia
- Vietnam
- Burma
- Laos
- Cambodia
- Brunei
What are the main points in the ASEAN trading bloc ?
ASEAN was started in 1967 by Thailand, Malaysia, Philippines and Singapore to promote economic and social growth in the region
Since then it has expanded several times with five more countries joining the trading bloc
It has negotiated a free trade agreement among member states and with other countries such as China, as well as eased travel in the region for citizens of member countries
NAFTA trading Bloc
Main key points
North American Free Trade Area - USA, Canada, Mexico
NAFTA was created in 1992 with the simple idea of giving the customers in the USA, Canada and Mexico cheaper goods
Without import tariffs between the counties the goods are less expensive which is a bonus for the consumer , but not always popular with the business
