trade blocs and globalisation

Question 1

how do trade blocs encourage globalisation

Answer 1

they encourage free trade and removal of external tariffs to help consumers, and bring economic strength

Question 2

how do trade blocs benefit businesses

Answer 2

common external tariffs mean its cheaper for customers so businesses make more money

eg. tesco gained 75million customers due to 10 nations joining EU in 2004

Question 3

advantages of trade blocs

Answer 3

bigger markets, less taxes
protection from foreign competitiors
compromise and concession
national firms can form TNCS

Question 4

disadvantages of trade blocs

Answer 4

lack of sovereignty (eg EU) due to heavy laws
interdependence heavy

Question 5

features of the EU

Answer 5

mutli-governmental organisation
allows freedom of movement, shared political legislation and free trade

Question 6

features of ASEAN (asian nations)

Answer 6

HIC countries which support NEEs, free trade and transfer of money

eg. Indonesia’s manufacturing industry has been developed

Question 7

4 ways governments can promote globalisation

Answer 7

1. promoting free trade through joining trade blocs
2. free market liberalisation
3. privatisation
4. ecnouraging business start-up