Trade and trade barriers pt3 Flashcards
Patterns of trade
In the north, industrialised countries, often from former colonial powers, imported more raw materials from less developed countries in the south.
Patterns of trade conclusion
More developed countries in the north must have had a comparative advantage in manufacturing over those in the south.
New patterns of trade emerging
Some manufacturing done in the north are now being done in newly industrialised countries like China and India. BRIC countries that previously didnt have global market power are now exerting themselves. The proportion of trade between the south and the north is now quite small.
Types of trading relationships
-Preference area
-Free trade area
-Customs union
-Common market
-Economic union
-Political union
Preference area
An agreement to reduce tariffs on certain types of trade with certain countries
Free trade area
Tariff free trade between members but each partner makes own tariffs on trades with non members.
Customs union
Common tariffs for trade with non menbers
Common market
A customs union with additional measures e.g. common trading standards
Economic union
Further integration, including legal and social policies. Potentially also a currency union.
Political unions
Members join and in doing so create a shared government although there may be higher power with individual members.
