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Trading blocs, Benefits of trading blocs, Global trading blocs, Trading…
Trading blocs
Protectionism (low)
Protecting small businesses and markets against foreign competition through tarrifs, import quotas, subsidies ect.
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Single markets (high)
As well as free trade, common laws are adopted to harmonise standards and tax.
Economic unions (high)
Aim for integration of economic, political and cultural factors. Includes the adoption of a common currency such as the euro.
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Global trading blocs
NAFTA
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A free trade zone including trade, investment, labor, financial dealing and environmetal legislation.
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ASEAN
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A free trade agreement between politically, economically and culturally diverse countries.
EU
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A single market with the free movement of people, goods and services.
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Trading blocs are partnerships and agreements between nations to allow free trade and the collaboration and integration of economic, political and cultural practices
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Import quotas - a government imposed trade restriction that limits the number or monetary value of goods that a country can import or export in a given period.
Subsidies - is an amount of money provided to firms to help reduce production costs so that lower prices can be issued resulting in greater consumption.
Monopoly - When one company and its product dominate the whole industry hereby there is little to no competition and consumers must purchase that specific good or service from that one company.
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