TNCs and Trade Blocks (1)

Question 1

What are TNCs?

Answer 1

Transnational companies

Question 2

How do TNCs decide where products will be made?

Answer 2

TNCs pick counties with cheaper labour for production and normally sell in HICs

Question 3

What is OPEC?

Answer 3

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.”

Question 4

Name some international trade blocks:

Answer 4

• OPEC
• EU
• ASEAN
• NAFTA
• MERCOSUR

Question 5

Advantages of international trade?

Answer 5

• 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

Question 6

What does ASEAN stand for?

Answer 6

Association of the Southeast Asian Nations

Question 7

What does OPEC stand for?

Answer 7

Organisation of Petroleum Exporting Countries

Question 8

What does NAFTA stand for?

Answer 8

North American Free trade agreement

Question 9

What does MERCOSUR stand for?

Answer 9

Mercado Comun del sur

Question 10

What does EU stand for?

Answer 10

European Union

Question 11

What is the purpose of the EU

Answer 11

21

Question 12

What is the purpose of OPEC?

Answer 12

1

Question 13

What is SAARC?

Answer 13

South Asian Association for Regional Cooperation

Question 14

Which countries are involved in SAARC?

Answer 14

Afghanistan,Bangladesh, Bhutan, India, Nepal, Maldives, Pakistan, Sri Lanka

Question 15

What does SAARC promote?

Answer 15

Development of economic and regional integration

Question 16

What are the main objectives of SAARC?

Answer 16

To promote competition in the area and provide equitable benefits for all countries involved as well as increasing trade and economic cooperation

Question 17

How were the economies of the countries within NAFTA impacted?

Answer 17

GDP in all three countries grew by up to 40%, Canadian and US economies more integrated with Mexico

Question 18

When was the EU founded?

Answer 18

1958

Question 19

When was the EU single market established and what changes did it bring?

Answer 19

1968, customs tariffs were no longer charged and economic growth was bigger than ever before

Question 20

What global impact does the EU have?

Answer 20

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

Question 21

How does the EU create inequality?

Answer 21

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

Question 22

Why was OPEC founded?

Answer 22

To improve communication among petroleum exporting countries as the world recovered from WWII

Question 23

What impact does OPEC have on trade?

Answer 23

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.