Trading Blocs

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    Created by
    emelia linwood

    Cards (6)

    • define trading bloc
      a group of countries that form an agreement to reduce or eliminate protectionist measures between each other
    • trading blocs help to increase trade liberalisation which leads to trade creation
    • what are the three examples of trade blocs
      • eu
      • asean
      • nafta
    • what are the disadvantages to businesses outside of the trading bloc?
      • higher costs from protectionist measures
      • less competitive
      • likely to decrease sales volume
    • what are the advantages to businesses inside the trading bloc?
      • acess to wider markets
      • external tariff walls
      • infrastructure support
      • free movement of labour
    • what are the disadvantages to businesses inside the trading bloc?
      • increased competition
      • common rules and regulations
      • retaliation
      • inefficiency
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