GS&GG Bk3 - Trade Agreements Flashcards
(22 cards)
How do trade agreements work?
What is an exception to them being spatially located?
- generally regulated by Governments who control what products are imported into a country + at what cost
- exceptions > commodities e.g. oil and OPEC
What are tariffs?
Taxes on products coming into a country (promote domestic products)
What are non-tariff barriers?
Rules on quality and production methods
What does bilateral mean?
Between two countries
What does multi-lateral mean?
Several countries
What are free trade areas?
Countries agree to abolish tariffs and quotas on trade between themselves but maintain restricts on goods coming from outside the area e.g. NAFTA
What are customs unions? + examples
Member countries operate a common external tariff e.g. The South American Regional Trade Agreement (Mercosur)
- European Union (27 countries ) > 10% on UK cars
What are common markets? + examples
Group without barriers + common external tariffs but also allow the free movement of labour and capital
- European Single Market (31 countries)
What are Preferential Trade Areas?
Exist when countries within a geographical region agree to reduce or eliminate tariff barriers on selected goods imported from other members of the area
What are economic unions?
No barriers between member countries, common external tariffs and adopt common policies in such areas e.g. agriculture, transport, pollution, industry, energy and regional development e.g. the current European Union
What is an example of a commodity based trade deal?
OPEC for oil
What are positives of trade agreements? (6)
- Greater chance of peace
- Incr trade + greater stability
- Greater flows of labour
- Financial support for individual sectors e.g. agriculture
- Remote areas can receive funding
- Cheaper imports + exports
What are the negatives of trade agreements? (5)
- Concerns over flows of labour
- reducing pay / conditions
- unbalanced communities (men)
- security issues
2.Centralised control = loss of sovereignty
- e.g. EU decisions being made in Brussels
- Unrealistic issues > food
- damaging stocks e.g. fish quotas - Unproportional voting
- EU = Germany, France, UK - Unequal funding
What are some key dates of the EU?
1956 > formation (6 states)
1973 > Uk joined
2004 > Accession Eight joined
Aims of the EU (4)
- Reducing tariffs and other barriers of trade
- Establishing a common external tariffs on imports from outside the Union
- Allowing free movement of labour, capital and other FofP
- Establishing common policies on agricultural, fishing, industry, energy + transport
What is the Single Market element of the EU?
- original core objective > free movement
- creation of a customs union
What is the monetary union element of the EU?
Euro launched > 11/15 states joined
What is the agriculture element of the EU?
CAP > Common Agricultural Policy
Aim post WW2 > food security
> intensification of things such as pesticides
environmental costs
introduce quotas
How does infrastructure link to elements of the EU?
- improve cross boarder
- Channel Tunnel and Trans-European Network
What is the regional development element of the EU?
- support to underdeveloped areas
POLAND
- move from state controlled market
- infrastructure with Germany
- free movement
What is the element of The European Development Fund within the EU?
Aid to former colonies of EU states
What is the environment element of the EU?
- issues with acid rain, ozone, noise, waste + water pollution
> global commons
