4.1.5 Trade Blocs

Question 1

What is a trade bloc?

Answer 1

•When a group of countries agree to trade together freely.
•Normally with no trade barriers

Question 2

What is the aim of trade blocs?

Answer 2

Trade creation and treat members more favourably

Question 3

What the 3 main trade blocs?

Answer 3

EU -european countries
USMCA-USA, Canada, Mexico
ASEAN-Indonesia,Thailand,Vietnam

Question 4

What are the 5 Main benefits of trade blocs?
(Inside)

Answer 4

1.FDI
2.Economies of scale
3.Competition
4.Greater trade
5.Market efficiency

Question 5

What are the 4 main drawbacks of trade blocs?
(Inside)

Answer 5

1.No protection
2.Greater competition
3.Common external tariffs
4.Rules and regulation