trade bloc Flashcards
trade bloc
a group of countries that manage and promote trade activity.
what can being in a trade bloc lead to
trade liberalisation as they benefit from free trade and trade creation as members are favoured for trading over non-members
WTO (world trade organisation)
permits creation of trade blocs as long as the trade is more liberalised for members than before
examples of trade blocs
EU (customs market, free trade, one currency)
NAFTA (North american trade agreement between USA, Canada and Mexico)
South east nations)
benefits of a trade bloc
free trade
increased movement between markets (globalisation)
no exchange rates
more international support
limitations of a trade bloc
discourages specialisation
discourages bi-lateral trade
being a member can mean high costs
