Chapter 70 - Trading Blocs

Question 1

Common market

Answer 1

A market where goods, labour and capital can move freely across the member states; tariffs are generally removed and non-tariff barriers eliminated, or at least reduced

Question 2

Customs union

Answer 2

A union where member states remove all trade barriers between themselves and members adopt a common set of barriers against non-members

Question 3

Economic and monetary union

Answer 3

An economic union that uses a common currency

Question 4

Economic union

Answer 4

A type of trade bloc involving both a customs union and a common market

Question 5

Free Trade Area (FTA)

Answer 5

A region where member states remove all trade barriers between themselves, but each member state nevertheless keeps different barriers against non-member states

Question 6

Preferential Trading Area (PTA)

Answer 6

A type of trading block where certain types of products from participating countries receive a reduced tariff rate

Question 7

Regional trade agreement (RTA)

Answer 7

Agreement made between two or more countries within a geographical region, which is designed to facilitate trade by bringing down barriers

Question 8

Rules of origin

Answer 8

A system of allocating certificates whereby a defined amount of a product or service must be certified as being created within that region

Question 9

Single market

Answer 9

A market where almost all trade barriers between members have been removed and common laws or policies aim to make the movement of goods and services, labour and capital between countries easy

Question 10

Trading bloc

Answer 10

A group of countries that has signed a regional trade agreement to reduce or eliminate tariffs, quotas and other protectionist barriers between themselves