Trade blocs Flashcards
What is EFTA?
European Free Trade Association, a regional trade organisation
Which countries are in EFTA?
Iceland, Lichtenstein, Switzerland, Norway
What do the participating states benefit from the EU?
Operating parallel to EU allows participation in European single market
When did the progressive elimination of customs duties in the EU start and with what?
1960 with the Treaty on European Free Trade Association
Benefit for countries in EFTA
Part of EU free trade without being tied to it
Example of EFTA giving back to EU
Switzerland opened borders to Europeans
Why was the EU originally created?
Created 1950s, post WW2 to prevent further conflict
When did EU countries stop charging customs duties?
1960s
When was the EU single market completed and what did it include?
1993, includes free movement of goods, services, people, money
How many nations are members of the EU?
28
It is the largest trading bloc in the world. What opportunities does this open?
Provides common negotiation with large economies like USA and Russia
How many jobs in Europe rely on EU trade?
1/7
What is OPEC?
A permanent intergovernmental organisation of 15 oil-exporting developing countries
When and why was OPEC started?
Started 1949 by Iran and Venezuela trying to improve communication between oil exporting countries after WW2
What does OPEC do?
Give all oil exporting countries a fair chance, rather than large producers driving down prices and making competition difficult
How much of the world’s discovered oil is within OPEC counties?
81.89%
Where is the majority of oil found?
Middle East
OPEC doesn’t impact trade between member countries as they don’t need to trade with each other. What does it impact?
Trade with other countries
How many nations in 1970s agreed on the creation of the South Asian Association for Regional Cooperation?
7 inner South Asian nations
Why was the South Asian Association for Regional Cooperation originally created?
Promote development of economic and regional integration
When was the South Asian Free Trade Area established and why?
1985 after the USSR’s intervention with Afghanistan
How does the SAARC help member states?
Aim to promote competition in area and benefit with transparency and integrity
How has the SAARC made trade cheaper?
Duties and tariffs on the countries have been reduced to zero
How does the SAARC address their main areas?
Address their 9 key areas independently
What are the 4 main reasons NAFTA was set up?
To eliminate barriers and facilitate movement of goods and services, promote fair competition, increase investment opportunities, establish cooperation framework
What was the immigration from Mexico to USA within NAFTA 1990-2000?
9.2 million
What did NAFTA spur?
A surge in trade and investment
How much did imports from Mexico increase after NAFTA was set up?
250%
How does NAFTA disadvantage small companies?
They have to pay the same tariffs as large companies
