4.1.5 Trading Blocs Flashcards Preview

Business Theme 4 > 4.1.5 Trading Blocs > Flashcards

Flashcards in 4.1.5 Trading Blocs Deck (6)
Loading flashcards...
1
Q

What is a trading bloc

A

A group of nations that have agreed to work together to reduce/remove protectionist policies between the nations within the bloc

2
Q

what are the advantages of a business operation in a trade bloc

A
  • removal of trade barriers may reduce costs or cause a surge in demand
  • fewer regulation means access to materials and labour is easier, this boosts the efficiency and quality of production
  • expanding market for products
    -greater competition forces firms to be more efficient
3
Q

What are the disadvantages for a business operating within a trading bloc

A
  • More expensive to import products from outside the bloc
  • small firms may be forced out by the increased competition that comes from elsewhere in the bloc
  • a business may have to adjust operations to be in line with regulations, increasing costs
4
Q

What countries make up NAFTA

A
  • Canada, the United States and mexico
5
Q

What is ASEAN

A
  • a trade bloc made of 10 countries including, Malaysia, Indonesia and Thailand
  • it is a free trade area
6
Q

What is the EU

A
  • a group of 27 countries that is a single market with no barrier to movement of labour, products and capital