Trade Blocs and Agreements Flashcards
what is a trade bloc
is a type of intergovernmental agreement where regional barriers to trade (tariffs and non tariff barriers) are reduced or eliminated among the participating states
advantage of trade blocs for the customer
goods come in at a cheaper price as there are no tariffs
how do trade blocs impact population (advantage)
immigration is made easier between countries (less regulations)- many move to countries with more opportunity
what is the agreement in EU countries which allows travel to be easier
Schengen agreement (can cross borders without passports)
advantage of trade blocs for trade
encourages internal trade within the block
new trade links established
how do trade blocs help world peace
it makes countries more politically stable - so won’t go to war with countries that are within your bloc as it will impact you negatively
how do trade blocs impact core and periphery nations within the bloc (negative)
core and periphery nations mean not all countries are equal- some are at a greater advantage than others (inequality)
periphery nations suffer as there is an aging population-young skilled labour moves out
inequality in cost- some countries put in more than they get out (eg UK)
trade blocs can cause … for countries outside of the bloc
isolation (as they discourage external trade)
how can the trade bloc system be abused
sometimes countries won’t work hard as they know they will be bailed out by member countries
how many countries are in the EU
28
examples of countries in the EU
Austria, Cyprus, Germany, France, Lithuania, UK, Sweden
why have many countries joined the EU
to boost their inward economy
example of a country that has been denied EU membership
Turkey- has led them to becoming isolated, unable to trade with surrounding countries without paying high tariffs and import tax
what are the ‘four freedoms’ within the EU
the cheaper and easier movement of: goods, services, people and money
countries within the EU have raised concerns about its…
relaxed immigration policy
how has the EU also tried to make the trade of capital more efficient
standardised currency
how has the EU benefitted the environment
EU have pledged to reduce carbon emissions in member countries
what does the EU have in order to protect its citizens
has human and legal rights in place to protect the citizens of member states in the hope that it would help to prevent the mistreating of people and the misuse of justice
what does SAARC stand for
South Asian Association for Regional Cooperation
how many countries are in SAARC
8
examples of countries within SAARC
India, Bangladesh, Pakistan, Maldives, Afghanistan
when was SAARC set up
1985
what are the 5 main improvement goals within SAARC
development of human resources science and technology population and health improvement rural development transport improvement
what industries have been improved as a result of SAARC
motor vehicle agreement between Bhutan, Bangladesh, India and Nepal which allows for the smooth transfer of passenger and cargo vehicles across borders with no interference
tourism industry improved due to relaxed visa policies
has SAARC altered anything other than the trade of goods and services
have been joining forces to combat terrorism- includes the police forces working together to track suspects
also attempted to tackle issues such as gender inequality
what does EFTA stand for
European free trade association
who is in EFTA
Iceland
Liechenstein
Norway
Switzerland
what is the aim of EFTA
to promote free trade and economic integration to benefit its members
even though countries within EFTA trade between themselves, the EFTA states also negotiate ..
free trade agreements (FTAs) with partners outside of the European union
how many FTAs does EFTA have
27 covering 38 countries - wide network
relations between EU and EFTA
several founding countries of EFTA have become members of the EU
sense of isolation from EFTA members who are exempt from many beneficial EU deals
what does NAFTA stand for
north American free trade agreement
countries within NAFTA
Canada, Mexico, the US
7 goals of the NAFTA agreement
grant the signatories MFN status
eliminate barriers to trade
promote fair competition
increase investment opportunities
protection of intellectual property rights
create procedures for the resolution of trade disputes
expand the trade agreement benefits
how much does trade with NAFTA account for in Canada and Mexico
80% of trade
NAFTA partners account for how much of the US’ trade
1/3
how much has NAFTA added to the US economy
$80 billion (not much)
how has NAFTA negatively impacted the US (focus on jobs)
decline in US manufacturing jobs (the auto sector has lost 1/3 of its jobs since 1994, whilst the Mexican auto industry employment has spiked from 120,000 to 550,000
how much FDI was from the USA to Canada in 2013
$368 billion
what does OPEC stand for
Organization of the Petroleum Exporting Countries
examples of countries in OPEC
Algeria, Indonesia, Iran, Iraq, Kuwait, Libya, Nigeria, Qatar, Saudi Arabia, the United Arab Emirates and Venezuela.
what is OPECs objective
to co-ordinate and unify petroleum policies among member countries, in order to secure fair and stable prices for petrol producers. and efficient regular supply of petrol to consuming nations as well as fair return on capital to those investing in industry
how much influence does OPEC have on the global oil market
has big influence in the short term, but in the long term its ability to influence the price of oil is quite limited as individual countries have different incentives
what can make oil prices rise
geopolitical tensions, increased demand and tight supply
