SEE: Globalisation: 3.2B

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  • 3.2B: National governments as key players
    • Trade blocs- an inter-governmental agreement where trade barriers are reduced/eliminated
      • EU- has evolved from a simple trade bloc into a multi-governmental organisation with its own currency and some shared legislation
        • Schengen area allows for free movement of people
        • It is the world's largest trading bloc, accounting for 16.5% of world trade
      • ASEAN- 10 member states, established in 1967
        • They have eliminated tariffs for free trade
        • The enlarged ASEAN market has helped Indonesia's manufacturing industry to thrive
        • In the future it is expected to operate as a single market + allow free movement
      • National governments are key players by promoting trade blocs
    • National governments are key players through policies
      • Free market liberalisation
        • Belief that government intervention in markets impedes growth
          • Encourages globalisation as encourages movement of capital and commodities
        • CASE STUDY: Thatcher's government
          • During Thatcher gov the UK embraced neoliberalism
          • Gov subsidies removed from industries that faced abroad competition
          • Tax breaks in areas like Canary Wharf
            • 1986 deregulation of the market encouraged FDI
      • Privatisation
        • National services being sold to private companies
        • UK did this under Thatcher e.g. railways, energy supplies
        • French company Keolis own stake in UK's southern rail
      • Encouraging business start ups
        • Method often involves low business tax
        • 1994 Sunday trading in the UK made UK market more attractive to foreign retailers
        • By 2015 the UK is the 4th largest recipient of FDI
  • Trade Blocs
    • + By removing barriers, markets grow e.g. when A8 joined EU Tesco gained 75 million more customers
      • +Enlarged market leads to reduced price
        • +Allows smaller nations to enter global trading
    • - Could lead to economic isolation and a decline in overall global trade

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