TNCs and Trade Blocks (1) Flashcards
What are TNCs?
Transnational companies
How do TNCs decide where products will be made?
TNCs pick counties with cheaper labour for production and normally sell in HICs
What is OPEC?
OPEC is the Organization of the Petroleum Exporting Countries. The purpose of OPEC for members is to “coordinate and unify the petroleum policies of its Member Countries and ensure the stabilization of oil markets in order to secure an efficient, economic and regular supply of petroleum to consumers, a steady income to producers and a fair return on capital for those investing in the petroleum industry.”
Name some international trade blocks:
- OPEC
- EU
- ASEAN
- NAFTA
- MERCOSUR
Advantages of international trade?
- Economies of scale make production cheaper and allow more production
- Increasing trade increases competition leading to competitive pricing and lower prices for consumers
- increased competition decreases chances on monopolies forming
- transfer of technology can increase global conditions and efficiency and save money
- increased employment and job creation
What does ASEAN stand for?
Association of the Southeast Asian Nations
What does OPEC stand for?
Organisation of Petroleum Exporting Countries
What does NAFTA stand for?
North American Free trade agreement
What does MERCOSUR stand for?
Mercado Comun del sur
What does EU stand for?
European Union
What is the purpose of the EU
21
What is the purpose of OPEC?
1
What is SAARC?
South Asian Association for Regional Cooperation
Which countries are involved in SAARC?
Afghanistan,Bangladesh, Bhutan, India, Nepal, Maldives, Pakistan, Sri Lanka
What does SAARC promote?
Development of economic and regional integration
What are the main objectives of SAARC?
To promote competition in the area and provide equitable benefits for all countries involved as well as increasing trade and economic cooperation
How were the economies of the countries within NAFTA impacted?
GDP in all three countries grew by up to 40%, Canadian and US economies more integrated with Mexico
When was the EU founded?
1958
When was the EU single market established and what changes did it bring?
1968, customs tariffs were no longer charged and economic growth was bigger than ever before
What global impact does the EU have?
The largest world trade bloc, provides members with free trade with a much larger market than if they were separate.
Provides common front in negotiating trade deals with larger economies eg. US and Russia
How does the EU create inequality?
Fees paid in vs economic gain can be unequal, in 2016 the UK paid in £8.6 billion more than it received back, never been given more than paid in
Why was OPEC founded?
To improve communication among petroleum exporting countries as the world recovered from WWII
What impact does OPEC have on trade?
As a trade agreement, OPEC has very little impact as all the countries trade the same product but it does control the trade between countries within the agreement and the ones they trade oil with.
