4.1.5

• What is a trade bloc?

  A trade bloc is a group of countries that have signed an agreement to reduce or eliminate trade barriers.
• What is the purpose of a trade bloc?

  To promote easier and freer trade between member countries.
• Name an example of a trade bloc.

  European Union (EU).
• How many countries are engaged in free trade within the European Union (EU)?

  28 European countries.
• What does NAFTA stand for?

  North American Free Trade Agreement.
• Which countries are involved in NAFTA?

  United States, Canada, and Mexico.
• What is ASEAN?


  Association of Southeast Asian Nations.
• What is the African Continental Free Trade Area (AfCFTA)?

  The world's largest trade bloc by number of countries aimed at increasing intra-African trade.
• What is a Free Trade Area?

  A Free Trade Area is where countries remove tariffs between themselves but maintain individual tariffs against non-members.
• Give an example of a Free Trade Area.

  NAFTA.
• What is a Customs Union?

  A Customs Union is where countries remove tariffs between members and adopt a common external tariff for non-members.
• Name an example of a Customs Union.

  Mercosur in South America.
• What is a Common Market?

  A Common Market allows free movement of labour and capital in addition to removing tariffs among members.
• Provide an example of a Common Market.

  European Union (EU).
• What is an Economic Union?

  An Economic Union involves deeper integration where members share economic policies, laws, and regulations.
• What is an example of an Economic Union?


  European Union (EU).
• What are the benefits of trade blocs for businesses?

  • Access to larger markets
  • Reduced costs from elimination of tariffs and quotas
  • Increased investment opportunities
• What are the challenges for businesses in trade blocs?

  • Increased competition from member countries
  • Regulation compliance with the bloc’s requirements
• What are the benefits of UK firms being part of the EU?

  • Access to the EU’s single market
  • Reduced costs from removal of tariffs and harmonized regulations
• What are the potential dangers for UK firms in the EU?

  • Increased competition from other EU firms
  • Regulatory compliance with EU laws that may not align with domestic preferences
• What is the goal of AfCFTA?

  To create a single market for goods and services among African countries.
• How could AfCFTA impact global trade?

  AfCFTA could increase Africa’s influence in global trade by strengthening economic ties and promoting growth.