L4b political groupings

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L4b political groupings

  1. 1. Anagrams – on the buzzers! • revtoyp • Poverty • comceoni • Economic • Dntarb inle • Brandt Line • Etasl peoveddle retuinocs • Least developed countries • Manuh nemtlovepde xedni • Human Development Index
  2. 2. Recap on last lesson
  3. 3. Political Global Groupings
  4. 4. Trade Blocs • Trade Blocs are political groupings of countries who have agreed to work together to mainly help each others economies to grow. • They differ in two ways to Economic Groupings; – To trade freely, agreements have to be drawn up that allow national barriers to be crossed. Thus national laws need to be amended, hence why its a political group. – Trade blocs contain countries at different levels of economic development (e.g. North American Free Trade Association consisting of Mexico, USA & Canada). This means that TNC’s can take advantage of the cheap labour in Mexico and the high level of expertise from USA & Canada in the design process) Political Global Groupings
  5. 5. Global Trade Blocs Political Global Groupings
  6. 6. Types of trade blocs – video 1. Under a preferential trade area (PTA), member countries agree to lower, but not eliminate, trade barriers within the group to levels below those erected against outside economies. 2. A free trade area (FTA) eliminates all trade restrictions between members of the trade bloc, but each member maintains its own restrictions on trade with third countries. 3. A customs union (CU) is a free trade area whose members agree on common tariffs against nonmember countries. 4. A common market (CM) allows for the free trade of goods among members, sets common tariffs against outside countries, and permits the free movement of factors of production among members. 5. An economic union (EU) has all the characteristics of a CM plus members agree to a uniform set of macroeconomic and microeconomic policies. Political Global Groupings
  7. 7. Movement of people • With the exception of the European Union, trade blocs only really make the movement of goods and money easier. • In USA the government see a huge challenge in stopping illegal Mexicans coming into the USA so they deploy thousands of troops to protect the boarder. Political Global Groupings
  8. 8. Your Turn! • By hand design a poster that explains; 1. What a trade block is 2. Why countries belong to them (p103 in your text book) 3. Give a bit of detail on a case study of a trade bloc. T R A D E B L O C S What is a trade bloc? What are the advantages? E.g. NAFTA! Political Global Groupings

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