Trade Blocs

Question 1

What are some types of trade bloc?

Answer 1

Free Trade Area - abolish tariffs and quotas (ZIT), maintain their own individual restrictions from others.
Customs Union - members have a common external tariff.
Economic/Political Unions - Have ZIT, CET, also adopt common policies, sometimes cooperate politically.

Question 2

THE EU:
* When did it form?
* Why did it form?
* How many members?
* What type of trade bloc is it?

Answer 2

• 1993
• After ww2 to prevent conflicts
• 27
• Political and economic union

Question 3

What are some successes of the EU?

Answer 3

+ Between 2014-2020, student exchanges in EU allowed over 4 million student study abroad.
+ EU members account for 16% of world exports and imports.
+ World’s largest single market and economy.

Question 4

What are some failures of the EU?

Answer 4

• High price for membership.
• Uneven growth of GDP across members; Greece saw a decline.
• Member countries have less say in what is bought/sold across it’s borders.
• Very difficult for non-members to trade.

Question 5

NAFTA:
* Stands for what?
* Involves who?
* When did it form?
* What type of trade bloc is it?

Answer 5

• North American Free Trade Agreement
• Canada, USA, Mexico
• 1994
• Free Trade Area

Question 6

What are some successes of NAFTA?

Answer 6

+ Quadrupled trade between members.
+ Lower prices, benefitting consumers eg oil in USA.
+ Boosted economic growth for all members.
Reduced political tension.

Question 7

What are some failures of NAFTA?

Answer 7

• Criticised for destroying half a million US jobs and lowering wages.
• Exploitation of Mexican workers.