4.1.5 Trading Blocs Flashcards
1
Q
Define trading bloc
A
A type of intergovernmental agreement to reduce regional trade barriers
2
Q
Facts about the EU trading bloc
A
- Includes 28 countries
- Free movement of people, money, goods and services between all 28
- 19 countries opted to have the Euro as their currency
3
Q
What is the ASEAN trading bloc?
A
Association of the Southeast Asian Nations
4
Q
Which countries started ASEAN and why?
A
- Started by Thailand, Malaysia, Philippines and Singapore to promote economic and social growth
5
Q
What is the NAFTA trading bloc?
A
North American Free Trade Area
USA, Canada, Mexico
6
Q
Why was NAFTA created?
A
To give the customers in USA, Canada and Mexico cheaper goods
7
Q
What are the benefits of joining a trading bloc?
A
- Access to larger markets
- EOS
- Enhanced competition
- Good supply of able bodied workers
8
Q
What impacts do trading blocs have on businesses?
A
- Freedom to trade
- Enlarged market
- Protection from international competition outside the bloc
- Freedom of movement of people
9
Q
What are the drawbacks of free trade?
A
- Dominance of developed countries
- Can kill off domestic businesses
- Can reduce national sovereignty
