4.1.5 Trade Blocs Flashcards Preview

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Flashcards in 4.1.5 Trade Blocs Deck (5)
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1
Q

What is a trade bloc?

A

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

2
Q

What is the aim of trade blocs?

A

Trade creation and treat members more favourably

3
Q

What the 3 main trade blocs?

A

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

4
Q

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

A

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

5
Q

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

A

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