Trade liberalisation and trading blocs. Flashcards
(18 cards)
Bilateral trade agreement
an agreement between two countries, or between a country and a trading bloc, which gives favorable trade arrangements and reduces some trade barriers.
Common external tariffs
a common tariff set by a group of countries imposed on imported goods from non-member countries.
Common market
a group of countries where there is free trade in products and factors of production, and which imposes a common external tariffs of imported goods from outside the market; product standards ans laws concerning free movement of goods and services are common between countries.
Creative destruction
a process where firms can produce innovative new products that replace existing products in the market.
Customs union
a group of countries between which there is free trade in products and which imposes a common external tariff on imported goods from outside the market.
Economic union
a group of countries where economies of member countries are as fully integrated economically as different regions within a single country
Fiscal union
a group of countries where a central body has some powers over government borrowing, spending and setting uniform rates of taxation in member countries.
Free trade area
a group of countries where there is free trade in goods and services and where member countries are allowed to set their own level of tariffs against non-member countries.
Harmonisation
establishing common standards, rules and levels on everything from safety standards to tariffs, taxes and currency.
Monetary union or currency union
a group of countries which share a common currency, such as the euro
Multilateral/plurilateral trade agreements
a regional trade agreement between three or more countries or trading blocs.
Quota
Physical limit of the quantity of imports.
Regional trade agreement
an agreement between at least 2 countries to reduce trade barriers between themselves.
Tariff
Tax on imports which has an effect of raising the domestic price of imports; less Demand
Trade creation
the switch from purchasing products from a high-cost producer to lower-cost producer.
Trade diversion
the switch from purchasing products from a low-cost producer to a an higher-cost producer.
Trade liberalisation
the move towards greater free trade through the removal of protectionist barriers of trade.
Trading bloc
a group of countries that have signed an agreement to reduce trade barriers between themselves.
