Trade Blocks: EU, NAFTA, EFTA, MERCUSOR Flashcards
1
Q
How many people live in the EU?
A
500 million
2
Q
How much money did the EU generate in 2010?
A
$16 billion
20% of global GDP
3
Q
Four advantages of the EU:
A
- Free movement of people/labour
- European currency reduces instability
- Restrictions favourable to member states
- Reduced war as common foreign policy
4
Q
Four disadvantages of the EU:
A
- Reduced power of the nation-state
- Single currency means all countries fall if there is a financial crisis
- Free movement can cause overcrowding
- common Fisheries Policy means that certain countries can fish in certain areas, no matter what country those waters belong to
5
Q
How many people live in NAFTA?
A
444 million
6
Q
How much does NAFTA produce annually?
A
$17 trillion in goods
7
Q
Four advantages of NAFTA:
A
- Increased trade between US, Canada and Mexico
- Decreased farm tariffs
- Trade surplus in services
- Reduced oil and grocery prices
8
Q
Three disadvantages of NAFTA:
A
- US workers faced pay cuts
- Mexican farmers put out of business by US-subsidised products
- Jobs move to Mexico for cheaper labour, so unemployment in US
9
Q
How many jobs were created by EFTA?
A
3.3 million
10
Q
Four advantages of EFTA:
A
- Economic integration
- Integrated politics
- Reduced production costs because of more efficient work structures
- Improved living standards
11
Q
Two disadvantages of EFTA:
A
- Canada only trades in goods rather than services
2. European workers may move to Canada to work
