Trade blocs and World Trade Organisation (Lesson 3) Flashcards
Define Multi-lateral trade deal
A deal involving more than two countries/groups.
Define Trade liberalisation
Movements towards free trade.
Define Bi-lateral trade deal
A deal involving two countries/groups.
What is Free trade area?
All tariffs and quotas on goods are removed between all members (e.g. NAFTA)
What is Customs Union?
Free trade is allowed between all members and tariffs on all non-members (e.g. MERCOSA).
What is Common market?
Capital and labour as well as goods can move freely inside the bloc (e.g. European Union).
What is Economic Union?
This is a monetary and fiscal union between member states (e.g. Economic European Union).
What is Preferential Trading Areas?
Tariffs and other trade barriers are reduced but not all removed between members (e.g. SAPTA)
What is the WTO?
Monitors trade between countries and makes he more efficient.
How much of world trade does the WTO represent?
98%.
GATT stand for?
General Agreement on Trade and Tariffs.
What round was WTO found in?
Uruguay Round.
What was the aims of the WTO?
- Help members
- Allow trade to increase living standards and reduce conflicts.
What are some criticisms of the WTO?
- Judgement against India-benched terms
- Allows rich countries to exploit developing countries.
