Trade Blocs

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Trade Blocs
- Political Groupings
  - NAFTA
    - Mexico and North America
      - USA have managementand research expertise
        Creates a SPATIAL DIVISION OF LABOUR
        Mexico can supply cheap labour force, allowing american TNC's to exploit the human resources
      - Mexico can supply cheap labour force, allowing american TNC's to exploit the human resources
  - EU
    - A8 nations; Poland, Hungary, Slovakia, Slovenia, Estonia, Czech Republic, Lithuania, Latvia. Joined in 2004
    - Makes movement of goods and money easier
- TNC's
  - Create the idea of a 'shrinking world'
  - Allow trade between MEDCS AND LEDCS
  - When 10 new nations joined the EU in 2004, Tesco gained access to 75 million extra customers
  - Shell, Nigeria
- Countries which make agreements to reduce barriers to trade
  - Removing tarrifs (taxes on imported goods)
  - Tax-free quotas
- Increases trade between members
  - Therefore creates large organisations which can trade with non-members
- Comparative Advantage
  - French Vineyards have good climate
Mexico and North America
- USA have managementand research expertise
  - Creates a SPATIAL DIVISION OF LABOUR

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