Chapter 39 Trading Blocs

Groups of countries that agree to reduce or eliminate trade barriers between themselves

Union that adopts a common currency

Measure of the the price of a country’s exports relative to its imports.

refers to the value of exports minus imports.

Allow free movement of goods between member countries

offer economic support to member countries

Allow tax concessions on goods manufactured by member countries

All of the above

United states, Canada, Alaska

United states, Canada, Mexico

United states, Canada, Iceland

United States, Alaska, Mexico

Cambodia

Brunei darussalam

Laos

China

Promotes economic sovereignty

Protect businesses from currency fluctuations

allow free movement of people

None of the above

Preferential trade agreement

Free trade agreement

Customs union

Economic Union

A common currency

Common economic policy

No internal trade barrier

Common external tariff

These are customs unions which adopt a common currency. The Eurozone is an example.

In these trading blocs trade barriers are removed between member countries but each member can impose trade restrictions on non-members.

These include the free movement of factors of production (e.g. labour) between member countries.

There is free trade between member countries combined with a common external tariff on goods from countries outside the customs union.

These are customs unions which adopt a common currency. The Eurozone is an example.

These include the free movement of factors of production (e.g. labour) between member countries.

There is free trade between member countries combined with a common external tariff on goods from countries outside the customs union.

In these trading blocs trade barriers are removed between member countries but each member can impose trade restrictions on non-members.