Equally, British firms have operations in the rest of the E.U. is now run by German or French owned companies. For instance, much of the electricity supply in the U.K. Firms in one member country are able to invest and operate in other member countries. Without common standards, producers in one country could seek a competitive advantage by cutting costs by lowering safety or environmental standards.Ī common market also involves the free movement of labour and capital amongst member countries For instance, in the European Union, workers are free to live and work in any member country. The EU sets product standards which all countries have to observe for instance vehicles have emission limits, electrical goods have to meet safety standards. It also involves free trade in services, such as air travel, banking & insurance, accountancy, healthcare and education.Ī common market also requires a common set of regulations and standards. The point of the CU is that it prevents a non-member country from exporting cars into a member country with a low tariff and then shipping the cars into other member countries which would have imposed a higher tariff.Ī common market involves not just a customs union, which covers only the movement of physical goods. An example of its CET is the 10% tariff that all members impose on imports of cars from non-member countries. In some customs unions there may also collectively agreed quotas on imports from non-members. There are no tariffs on goods between members of a CU, but unlike a FTA, there is a common external tariff (CET), which means that all members impose the same level of tariffs on non-members. MERCOSUR is another FTA in South America, which includes both Brazil and Argentina, the two biggest economies of the continent. The most important example of a FTA is the north American Free Trade Agreement (NAFTA), comprising the USA, Canada and Mexico. There are no tariffs or quotas on trade in goods between member countries, but each country can set its own _tariffs _(a tax on imports) or _quotas _(a physical restriction on the quantity of imports) on goods from non-members. For instance, the United Kingdom (England, Scotland, Wales and Northern Ireland) is a fully integrated single economy, with no trade barriers between members, free movement of people and capital, a common currency and a shared government which controls fisacal policy (taxes and public spending). The higher the level of integration, the closer the member countries are to operating as a single economy. These different forms are described below, going from the lowest to highest level of economic integration. Trading blocs take different forms according to the level of economic integration. A BTA could also comprise an agreement between two trading blocs, such as the European Economic Area (EEA), which is a trade agreement between the European Union (EU) and the small group of European countries that belong to the European Free Trade Agreement (EFTA). This may comprise just two countries, such as China and the U.S.A, or it could be an agreement between a single country and a trading bloc, such as the CETA agreement between Canada and the European Union. Where there are just two parties to a trade agreement it is known as a bilateral trade agreement (BTA). They are therefore sometimes known as regional trade agreements (RGA). Trading blocs are usually comprised of countries which are geographically close to each other. This involves the partial or complete elimination of trade barriers. Trading Blocs and the World Trade Organisation (WTO) What is a trading bloc?Ī trading bloc is a group of countries which have preferential trading arrangements between members. Conflicts and Trade-Offs Between Objectives and Policies.Equilibrium Levels of Real National Output.The Benefits and Costs of Economic Growth.The Characteristics of Aggregate Demand.The UK Economy - Performance and Policies.Positive and Normative Economic Statements.Alternative Views of Consumer Behaviour.Free Market Economies, Mixed Economy and Command Economy.Price, Income & Cross Elasticities of Demand.Specialisation and the Division of Labour.Introduction to Markets and Market Failure.Wage Determination in Competitive and Non-competitive Markets.Business Behaviour and the Labour Market.Factors Influencing Growth and Development.Macroeconomic Policies in a Global Context.Trading Blocs and the World Trade Organisation (WTO).Strategies Influencing Growth and Development.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |