Trade Agreements

Question 1

3 things a trade agreement must address

Answer 1

• encourage foriegn trade
• decrease tariffs and trade barriers
• promote trading internationally

Question 2

Explain the 2 main events that occurred at the Bretton Woods Conference:

Answer 2

In 1944 at the Bretton Woods Conference, the foundations for international trade agreements were
established to contribute to globalization, The World Bank and the International Monetary Fund (IMF).

Question 3

Bilateral Trade Agreement

Answer 3

• consists of 2 countries

- goods and commodities are exchanged

Question 4

Multilateral

Answer 4

• involves 3 or more countries

- goods and commodities are bought and sold in terms of value

Question 5

NAFTA

Answer 5

North American Free Trade Agreement

Question 6

What is NAFTA meant to promote?

Answer 6

NAFTA was implemented in order to promote trade between the USA, Canada, and Mexico.

Question 7

Advantages of NAFTA

Answer 7

• reduces trade barriers
• eliminates tariffs on imports and exports
• increased economic growth
• Better prices for consumers

Question 8

Disadvantages of NAFTA

Answer 8

• USA job loss
• increased job outsourcing
• degradation of natural resources
• no custom regulations

Question 9

FTAA

Answer 9

Free Trade Area of the Americans

doesn’t exist

Question 10

What did the FTAA propose?

Answer 10

It proposed a “free-trade zone encompassing all of the Americas… North America and South America and of the Caribbean with the exception of Cuba.
It doesn’t exist because of environmental and labour laws.

Question 11

EU

Answer 11

European Union

Question 12

Purpose of the EU?

Answer 12

The EU purpose was to stop war within European countries, by promoting peace, offering freedom, security, and justice.

Question 13

Criteria to join the EU?

Answer 13

The criteria for joining the EU is that a candidate country has achieved stability of institutions guaranteeing democracy.

Question 14

Some countries in the EU?

Answer 14

Ireland, Italy, Spain, Portugal, Romania, France, etc.

Question 15

What do all EU countries share?

Answer 15

EU members share a customs union; a single market in which capital, goods, services, and people move freely; a common trade policy; and a common agricultural policy.

Question 16

Formation of the EU?

Answer 16

• created in 1993“
• The EU was originally set up with an aim of ending, or attempting to eliminate, the frequent and bloody wars between neighbors, which culminated in the Second World War

Question 17

The EU has a single market, what are some advantages of this?

Answer 17

• easier access to a wide range of suppliers and
  consumers.
• lower unit costs.
• greater commercial opportunities.

Question 18

3 organizations that the EU is involved with:

Answer 18

• European Parliament
• European Commission
• The European Council

Question 19

How is Canada economically connected to the EU?

Answer 19

Canadians are employed by the EU through international trade and goods and service work.

Question 20

TPP

Answer 20

Trans-Pacific Partnership

Question 21

What is the purpose of the TPP?

Answer 21

The TPP was the first regional deal to include comprehensive rules on digital commerce, and the free flow of information across borders.

Question 22

USMCA

Answer 22

United States Mexico Canada Agreement

Question 23

What is the purpose of the USMCA?

Answer 23

The USMCA is in place for countries to abide by IMF standards, aimed to prevent the manipulation of exchange rates.