Trade agreements and access to markets Flashcards
What is a trading bloc?
it supports free trade between member countries without charges
What is a negative of trading blocs?
it is unfair for other countries no in the trading bloc since they have to pay charges for trade
What is the World Trade Organisation (WTO)?
it aims to cut trade barriers and stop countries trading freely, so that goods can flow more easily
What is the Organisation of Petroleum Exporting Countries (OPEC)?
consists of 11 states who supply 40% of the worlds oil, they try to regulate global oil market to ensure a good fair price
What is the G8?
a group of 8 countries that represents 65% of the worlds trade and annually meets to discus economic development
What countries are in the G8?
Canada
France
Germany
Italy
Japan
Russia
UK
USA
What is the World Bank?
promotes investment globally and provides loans for countries under certain conditions
What is the International Monetary Fund (IMF)?
aims to promote global monetary by monitoring the global economy and encourages the growth of international trade
Give an example of a trade bloc?
the EU
How many citizens are part of the EU?
500 million
Why was Greece close to leaving the EU in the summer of 2015?
they had debts of over 4 billion euros
Why is Greece in so much debt?
When they joined the EU they spent money on government funding in the public sector. Then when they ran out of money the EU and IMF granted them over4 billion euros.
What are the positives of Greece staying in the EU?
- imports 50% of food and 80% of energy so benefit from free trade
What are the negatives of Greece staying in the EU?
- if Greece was independent it could trade more freely and take advantage of its location
- have their own currency so have flexibility with exchange rates
