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
