Trade And Access To Markets

Question 1

What are trading blocs

Answer 1

Agreements which remove trade barriers between countries, while keeping Barriers to those not in the country. An example would be the EU/NAFTA

Question 2

How do developed countries have greater access to market

Answer 2

• Developed countries can invest in different countries meaning they can avoid tariffs.
• Tariffs on LICs, making it harder for them to access markets
• LICs rely on loans form HICs which means they need to remove trade barriers.
• LICs aren’t party of trade blocs

Question 3

How has international trade changed

Answer 3

• Trade increased by 8x since 1980
• NEEs beginning to catch up in trade
• Trade blocs formed and barriers removed
• Rise in fair trade

Question 4

How has international investment changed

Answer 4

FDI has risen drastically, developed countries now invest in NEEs