Regional Trading Blocs
- Created by: Jack Cohen
- Created on: 30-05-14 00:53
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- Regional Trading Blocs
- Trading Blocs - A group of countries trade freely with each other. However, countries inside the trading bloc may raise trade barriers against those countries outside of the trading bloc.
- Trade Barrier Examples:
- Tariffs
- Tax on Imports
- Shift Supply Curve left
- Quotas
- limit of the amount that a country can export
- Tariffs
- Trade Barrier Examples:
- Impact of Regional Trade Blocs on trade
- Trade Diversion
- Occurs when you trade away fro your original partners
- Trade Creation
- Creation of new trading Relationships.
- Trade Diversion
- Benefits
- Trade Creation
- Newer trading Relationships.
- Economies of Scale
- Bigger Market - More Production
- Comparative Advantage
- Competition
- More Competition - Lower Price
- Similar stages of Development
- EU Countries have common interests.
- Diversity of Industries
- More Power Negotiating Positions
- Trade Creation
- Trading Blocs - A group of countries trade freely with each other. However, countries inside the trading bloc may raise trade barriers against those countries outside of the trading bloc.
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