Summary Geography A Level: Economic transition: The role of the WTO and Trading Blocs
8 views 0 purchase
Course
Economic transition
Institution
CIE
These Geography A-Level notes examine the role of the World Trade Organization (WTO) and trading blocs in global economic transition. They cover how these institutions influence international trade, economic policies, and regional cooperation, as well as their impact on global and local economies. ...
The role of the WTO and Trading Blocs
1. Trading blocs are groups of countries in regions that promote and manage trade. They lead
to the freeing of trade from protectionist measures and trade creation between members,
since they are treated favourably in comparison to non-members.
2. Trading blocs could distort world trade for those who do not belong to them and there could
be an unequal allocation of resources and rise in protectionism. A common external tariff
contradicts the WTO’s principles, since although there is free trade between members,
protectionist barriers are imposed on those who are not members. Setting up a free trade
area could be seen to violate the WTO’s principle of having all trading partners treated
equally. However, they can complement the trading system and the WTO strives to ensure
that non-members can trade freely and easily with the members of a trade bloc.
3. Free trade areas are the loosest forms of forms of trading blocs. They involve embers
abolishing tariffs and quota on trade between themselves but maintain independent
restrictions on imports from non-member countries. The tightest form of trading bloc are
Economic Unions, these are organisation that allow free trade of goods and services, free
movement of labour and capital and require members to adapt common economic policies
on certain industries.
4. The United States, Mexico and Canada are all part of NAFTA (USMCA). It is thought that
the United States benefited the most from NAFTA, although has still benefited by having
industrialised while many of the United States factories closed in the aftermath of NAFTA.
The United States has a trade deficit with both Canada and Mexico
5. The main issues between the United States and Mexico having free trade are; illegal
immigration, arms sales, and drug smuggling which continue to be problems in the 21 st
century.
6. The EU has made a number of significant accomplishments. First, it had granted its citizens
the right to live, love, and work anywhere in the EU. It has also grown to be the largest single
market in the globe. Additionally, millions of people have received help and development
internationally, and it has managed to maintain being a peaceful continent since 1957.
7. The ASEAN wants to promote free trade among its members. Decreased trade barriers and
more economic ties between Member States should result from this. Businesses should also
experience cheaper costs, more commerce, a broader market, and economies of scale. A
unified economic strategy, a single currency, and the removal of all tariff and nontariff
obstacles are the three main components of the MESOCUR economic union, which aims for
complete economic integration. Twenty Caribbean developing nations have joined forces to
form the Caribbean Organization and Common Market (CARICOM), a political and economic
community that collaborates to formulate regional policies and promotes trade and
economic development.
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller henrystudynotes. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $0.00. You're not tied to anything after your purchase.
