GPN 61 Trade Blocs HL

What is a trade bloc?

• A group of countries that block trade with each other

• A group of countries that agree on policies to reduce trade barriers

• A type of economic sanction

• A military alliance

What is the most basic form of trade bloc?

• Free Trade Area

• Economic Union

• Customs Union

• Common Market

What do Free Trade Areas agree to abolish?

• Foreign investments

• Labor laws

• Import quotas and tariffs

• Export taxes

What is a Customs Union?

• A trade bloc that restricts immigration

• A trade bloc that only allows certain goods

• A trade bloc with a common external tariff

• A trade bloc with no tariffs

What is one potential downside of Free Trade Areas?

• Higher prices for consumers

• Less employment opportunities

• Increased tariffs on imports

• Political challenges in reducing imports from outside the bloc

What does a Common Market allow in addition to free movement of goods?

• Free movement of tariffs

• Free movement of ideas only

• Free movement of military forces

• Free movement of people and capital

What is an Economic Union?

• A union that focuses solely on trade

• A union with shared policies beyond economics

• A union that restricts trade

• A union that only includes developed countries

Which of the following is an example of an Economic Union?

• NAFTA

• Mercosur

• European Union

• ASEAN

What can be a consequence of countries forming trade blocs?

• Increased likelihood of conflict

• Decreased economic cooperation

• Isolation from global markets

• Improved peace and stability

What is a challenge that can arise from trade blocs?

• Increased tariffs on all goods

• Loss of sovereign power

• Reduction in trade volume

• Complete economic independence