Ch. 47: World trade patterns & trading blocs

World Trade (WT) Patterns

What have the trends been in WT over the past 60 years in terms of amounts & regions?Do getting startedReasons for ↑ in WT•better transport & communications•↓ trade barriers•↑ multinationals•travel & consumer awareness•trade agreements• communism (break-up USSR)

Trading blocs•Definition = ? trading blocs: a group of countries

situated in the same region (usually) that join together and enjoy trade free of quotas, tariffs and other trade barriers

•E.g. =?•EU, NAFTA (North American Free trade

Agreement), CARICOM (Caribbean Community)

http://www.youtube.com/watch?v=YDUq0DINhYk

(3:50)

Advantages of trading blocs Disadvan’s of trading blocs

To members; As with free trade generally

(see P.210) ↑ FDI (What is this?) ↑ co-operation, ↓ tension

To members; Still not world free trade Membership & other

compliance costs Overdependence on blocsTo non-members Trade barriers when trading

with the blocExam Practice