ILO:
a) Expansion of trading blocs:
o EU and the single market
o ASEAN
o NAFTA
b) Impact on businesses of trading blocs
a) Expansion of trading blocs:
o EU and the single market
o ASEAN
o NAFTA
b) Impact on businesses of trading blocs
Trading Blocs
When a country joins a trading bloc it makes it easier for that country to sell to that country.
Types of trading blocs:
A bilateral trade agreement is one made between two contracting parties, and a regional trade agreement is one made between two or more contracting parties that share some common denomination known conceptually as “region.”
The purpose of such agreements is to reinforce trade relations between the members.
• Free trade areas – these are blocs in which groups of countries agree to abolish trade restrictions between themselves but maintain their own restrictions with other countries.
• Customs unions – these have free trade internally and a common set of protectionist measures. Examples include the EU, the North American Free Trade Agreement (NAFTA) and the Association of Southeast Asian Nations (ASEAN).
• Common markets – these have the same characteristics as customs unions but also allow the free movement of factors of production.
• Monetary unions – these are customs unions which adopt a single currency.
Types of trading blocs:
A bilateral trade agreement is one made between two contracting parties, and a regional trade agreement is one made between two or more contracting parties that share some common denomination known conceptually as “region.”
The purpose of such agreements is to reinforce trade relations between the members.
• Free trade areas – these are blocs in which groups of countries agree to abolish trade restrictions between themselves but maintain their own restrictions with other countries.
• Customs unions – these have free trade internally and a common set of protectionist measures. Examples include the EU, the North American Free Trade Agreement (NAFTA) and the Association of Southeast Asian Nations (ASEAN).
• Common markets – these have the same characteristics as customs unions but also allow the free movement of factors of production.
• Monetary unions – these are customs unions which adopt a single currency.
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How has the EU expansion provided an opportunity and threat to UK firms?
EU Trade Policy explained
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Assess the threats that exist with Brexit for UK firms?
Brexit Forensics: Car Industry Fears
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Counter balance to Brexit?
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Brexit: Will UK banks move abroad? - BBC Newsnight
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After Brexit, U.K. eyes U.S. trade deal
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Research task:
Read the following article: Is free trade good or bad?
Then research which companies/industries are most at risk from Brexit and why?
Which companies/industries have the most to gain?
Read the following article: Is free trade good or bad?
Then research which companies/industries are most at risk from Brexit and why?
Which companies/industries have the most to gain?
