Trading Blocs

2. two or more countries share the same currency exp Eurozone
4. trading blocs comprised of countries which are geographically close to each other
8. example of a FTA
10. where there are two parties to a trade agreement
11. Trade increases due to removal of import tariffs, production will shift to a lower cost producer

1. involves free trading services, such as travel, banking and insurance, includes a common set of regulations and standards and free movement of labour and capital
3. no tariffs or quotas on trade in goods between member countries, but each country can set it own tariffs or quotas on goods from non-members
5. no tariffs on goods between members of this, there is CET which means all members impose the same level of tariffs on non-members
6. the exchange of virtually identical products between countries within the same region
7. a group of countries which have preferential trading arrangements between members
9. When trade is diverted from a more efficient exporter towards a less efficient one due to FTA or custom unions
12. a trading bloc between 10 countries in Southeast Asia