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. Recap on last lesson

3. Political Global Groupings

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. Global Trade Blocs
Political Global Groupings

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. 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. 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