Trade Blocs: Advantages and Disadvantages
A mindmap summarising the pros and cons of Trade Blocs.
- Created by: Tilly
- Created on: 14-01-13 17:08
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- Trade Blocs
- Benefits
- Greater Economic strength
- Jobs created
- Free trade within blocs
- Protection of internal economy
- Promotes internal trade
- Access to all markets; creation of trade
- Economies of Scale: Order in bulk = costs go down = more profit
- Disadvantages
- Distortion of Trade (alters amount of trade)
- Loss of benefits to trade outside of bloc
- Inefficiencies protected (if no competition, companies can afford to be inefficient)
- Trade Blocs impose PROTECTIONIST POLICIES
- Tariffs
- extra money can be gained by home country
- cheaper internal prices = more internal sales
- extra money can be gained by home country
- Quotas
- limit on import amounts over a certain time period
- Tariffs
- Benefits
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