Trade in the contemporary world Flashcards
Outline some advantages of trade blocs.
More peace, increased trade, more democracy, more support of public sector, more regions have remote support, common currency, smaller nations more representation.
Outline disadvantages of trading blocs
Loss of sovereignty, adoption of other countries economic policy, pressure to adopt legislation, elites have disproportional power, federalism may be opposed, leads to separatist movements.
When was the Eu created and what was it called?
1957, the European Economic Community
Name the original 6 Eu members.
France, Germany, Belgium, Italy, Luxembourg, Netherlands
What was the EU’s original aim?
To promote prosperity in West germany, allow for peace after WW2.
What has been the main consequence of the EU?
Economies have become interdependent and living standards have risen.
Give an example of how a FTA (free trade agreement) has lead to more trade?
Allowed for an increase in trade with South Korea- from €30.6 billion to €41.5 billion.
Give an example of a country that the EU has helped export more goods.
Romania, risen from $57 billion to $66 billion.
Name an economic union
The EU
Name a common market
MERCOSUR (south america)
Name a free trade area
NAFTA (North America
Name somewhere that has full economic integration
The USA
How does developing patterns of communications and technology benefit global trade?
Helps businesses, producers and customers connect easily. Used by border agencies, used by governments.
How is there inequality in technology and communications?
It is limited in the developing world, in 2012 less than 1 in 1,000 of the population of Sub-Saharan Africa has broadband. Global patterns of internet and phone subscriptions are similar to trade patterns.
