Social And Economic Groupings

Question 1

Free trade areas

Answer 1

Abolish tariffs and quotas on trade between themselves but still have protection from the outside world e.g. NAFTA and the EFTA

Question 2

Customs union

Answer 2

Member countries operate a tariff on imports from outside the group e.g. The South American regional trade agreement

Question 3

Common markets

Answer 3

These are like customs unions but also allow the free movement of labour and capital e.g. How the EU used to be

Question 4

Economic unions

Answer 4

Members are required to do what the other alliances do. And they adopt common policies in such as agriculture, transport, pollution, industry, energy and regional development e.g. The EU

Question 5

State some major trade blocs

Answer 5

The EU
NAFTA
ASEAN

Question 6

Positives of international groupings

Answer 6

• greater chance of peace internationally
• increased trade
• greater overall democratic function
• possibility of developing a common currency
• easier movement between countries
• smaller nations have a bigger representation in world affairs

Question 7

Negatives of international groupings

Answer 7

• loss of sovereignty
• some loss of financial controls
• pressure to adopt central legislation
• some economic sectors are damaged (forced to share resources)
• smaller regions within large countries demand a greater voice which has led to separatist movements