1. Give some examples of trading blocs:
- BFC, NFFC, & SMO
- PTO, the BU, & AZEAN
- The EU, ASEAN, & NAFTA
- EQ, HTO, & TSFC
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Other questions in this quiz
2. Why would Protectionism be negative in the long term?
- The revenue from tariffs may become too big for the government
- It can be expensive for a business to upkeep
- It weakens the protected industry because there would be no reason to innovate due to lack of competitors
- It means that business will get less revenue
3. What is backwards innovation?
- Strategy of innovating in developing markets and then distributing in developed markets e.g. wind-up radios
- Producing products backwards
- Innovation by walking backwards
- Innovating in developed markets and distributing in developing markets e.g. computer
4. Definition of globalisation?
- "If everyone decided to travel around the globe"
- "When a business successfully enters every single market on the globe"
- "The increased freedom and capacity of individuals and firms to undertake economic transactions with residents of other countries on a global scale"
- "The decreased freedom and capacity of individuals and firms to undertake economic transactions with residents of other countries and operate on a global scale"
5. Advantages of being in a trading bloc:
- The benefits of free trade between countries in different blocs are lost
- Firms inside the bloc are protected from cheaper imports from outside e.g. EU shoe industry from China/Vietnam imports
- It reduces the beneficial effects of specialisation
- Products cost more for consumers because efficient producers from outside the bloc may have tariffs added to them
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