Trading Blocs

Question 1

What is a trading bloc

Answer 1

A group of countries that form an agreement to reduce or eliminate trade barriers, such as tariffs, quotas, between member countries

Question 2

What is economic integration

Answer 2

The process where countries coordinate and merge their economic policies to reduce trade barriers and promote the free flow of goods, services, labour and capital

Question 3

What is trade liberalisation

Answer 3

The process of reducing or eliminating trade barriers, such as tariffs and quotas, to allow for a freer exchange of goods and services between countries

Question 4

What is a free trade area (FTA)

Answer 4

Free trade area (FTA’s) - countries remove tariffs and other trade barriers between members but maintain individual external tariffs for non members

Question 5

What is an example of an FTA

Answer 5

ASEAN