Trade

• what are trade blocs?


  Voluntary international organisations that exist for trading purposes, bringing greater economic strength and security to the nations that join.
• preferential trade area


  Lower, but not eliminate, barriers among members
• free trade area


  eliminate internal barriers, but maintain independent external barriers
• examples of free trade area


  NAFTA
• customs union


  eliminate internal barriers and agree on common external barriers
• example of customs union


  European Union
• common market


  eliminate internal barriers, adopt common external barriers, allow free movement of resources (eg labor) among member countries
• examples of common market

  East African common market
• economic union


  eliminate internal barriers, adopt common external barriers, free movement of resources and a uniform set of economic policies
• examples of economic union


  European union
• what is privatisation?


  national services and infrastructure are no longer run by the government, and they are sold to private investors to reduce government spending
• neoliberalism


  free trading, open barriers to trade
• deregulation


  cut regulations to bank industry
• privatisation example


  BT not being primary phone business but now is multiple serivces
• What countries apart of Mercosur?


  -Argentina

  -Brazil

  -Paraguay

  -Uraguay

  has grow to inclue chile, bolivia, peru, colombia, equador, suriname
• When was it created?

  1991
• What is a common market?


  eliminates internal barriers for trade, adopt common external barriers, allows free movement of resources among member countries
• What are the political benefits of Mercosur?


  member countries integrate and cooperate on matter such as democracy, human rights and drug trafficking
• What are the commercial benefits of Mercosur?


  -larger market for member countries

  -increases exports and economic growth for members countries

  -opens up markets, increasing exports and attracts foreign investment

  -increases efficiency and competitiveness with regional integration