Trading Blocs

Question 1

Trading blocs

Answer 1

-group of nations that have agreed to reduce or remove protectionist policies between them

Question 2

least integrated

Answer 2

Preferential trade area
-remove or reduce tariffs or quotas
-only on specific goods
-countries strike agreements, so they trade more freely with each other

Question 3

Free trade area

Answer 3

-country inside bloc removes all barriers to trade
-trade freely on all goods
-still have automany to stirke trade agreements with other nations outside

Question 4

Customs union

Answer 4

-free trade between nation in bloc
-common external barriers/all countries in bloc have agreed level of protection that they will apply to countries outside bloc

Question 5

Common market

Answer 5

-free trade between members of bloc
-common external barriers
-free movement of labour and capital/ workers have entitlement to work there

Question 6

Most integrated

Answer 6

Economic union
-free trade
-shared external barriers
-free movement of capital and labour
-harmonises same polices/interest rates set across nations