trade bloc

Examples of trade bloc in the following topics:

• The North American Free Trade Agreement (NAFTA)

  • NAFTA is an agreement signed by Canada, Mexico, and the United States, creating a trilateral trade bloc in North America.
  • The North American Free Trade Agreement (NAFTA) is an agreement signed by the governments of Canada, Mexico, and the United States, creating a trilateral trade bloc in North America.
  • It superseded the Canada – United States Free Trade Agreement between the U.S. and Canada.
  • In terms of combined GDP of its members, the trade bloc is the largest in the world as of 2010.
  • --Canada trade was already duty free.

• Trading blocs and agreements

  • Regional trading blocs represent a group of nations that join together and formally agree to reduce trade barriers among themselves.
  • NAFTA is such a bloc.
  • Such agreements are designed to facilitate trade through the establishment of a free trade area customs union or customs market.
  • Free trade areas and customs unions eliminate trade barriers between member countries while maintaining trade barriers with nonmember countries.
  • Trade agreements are becoming a growing force for trade liberalization; the development of such agreements provides for tremendous opportunities for US companies doing business in Latin America and North America.

• Technological Barriers

  • Standards-related trade measures, known in WTO parlance as technical barriers to trade play a critical role in shaping global trade.
  • As tariff barriers to industrial and agricultural trade have fallen, standards-related measures of this kind have emerged as a key concern.
  • These standards-related trade measures, known in World Trade Organization (WTO) parlance as "technical barriers to trade," play a critical role in shaping the flow of global trade.
  • Most countries are now part of the World Trade Organization.
  • The European Union is its own bloc within the W.T.O.

• The Asia-Pacific Economic Cooperation

  • APEC is a forum for 21 Pacific Rim countries that seeks to promote free trade and economic cooperation throughout the Asia-Pacific region.
  • Established in 1989 in response to the growing interdependence of Asia-Pacific economies and the advent of regional economic blocs (such as the European Union) in other parts of the world, APEC works to raise living standards and education levels through sustainable economic growth and to foster a sense of community and an appreciation of shared interests among Asia-Pacific countries.
  • Since 2006, the APEC Business Advisory Council, promoting the theory that a free trade area has the best chance of converging the member nations and ensuring stable economic growth under free trade, has lobbied for the creation of a high-level task force to study and develop a plan for a free trade area.
  • The proposal for a FTAAP arose due to the lack of progress in the Doha round of World Trade Organization negotiations, and as a way to overcome the "spaghetti bowl" effect created by overlapping and conflicting elements of the umpteen free trade agreements.
  • Explain the role The Asia-Pacific Economic Cooperation (APEC ) plays in ensuring free trade

• Absolute Advantage and the Balance of Trade

  • Absolute advantage and balance of trade are two important aspects of international trade that affect countries and organizations.
  • Absolute advantage and balance of trade are two important aspects of international trade that affect countries and organizations .
  • A positive balance is known as a trade surplus if it consists of exporting more than is imported; a negative balance is referred to as a trade deficit or, informally, a trade gap.
  • The balance of trade is sometimes divided into a goods and a services balance.
  • The European Free Trade Agreement has helped countries international trade without worrying about absolute advantage and increases net exports.

• Consumer marketing models

  • By way of example, compare the automobile industry in developed countries to the automobile industry in the Soviet Bloc countries prior to 1989.
  • Customers had a wide variety of automobile models to choose from while citizens in the Eastern Bloc had few.

• Economics

  • Trade barriers are government-induced restrictions on international trade, which generally decrease overall economic efficiency.
  • Trade barriers are government-induced restrictions on international trade.
  • Man-made trade barriers come in several forms, including:
  • Most trade barriers work on the same principle–the imposition of some sort of cost on trade that raises the price of the traded products.
  • If two or more nations repeatedly use trade barriers against each other, then a trade war results.

• Balance of Trade

  • Suppose the USA imported $1 billion worth of goods and services in 2008 and exported $750 million dollars worth of goods and services, then its trade deficit would be $1 billion minus $750 million, which equals a trade deficit of $250 million.
  • A positive balance is known as a "trade surplus," if it consists of exporting more than is imported; a negative balance is referred to as a "trade deficit" or, informally, a "trade gap."
  • The balance of trade is sometimes divided into a goods and a services balance.
  • Factors that can affect the balance of trade include:
  • In addition, the trade balance is likely to differ across the business cycle.

• The Argument Against Barriers

  • Most trade barriers work on the same principle: the imposition of some sort of cost on trade that raises the price of the traded products.
  • If two or more nations repeatedly use trade barriers against each other, then a trade war results
  • Trade barriers are often criticized for the effect they have on the developing world.
  • If international trade is economically enriching, imposing barriers to such exchanges will prevent the nation from fully realizing the economic gains from trade and must reduce welfare.
  • International trade is the exchange of goods and services across national borders.

• Trade Associations

  • A trade association, also known as an industry trade group, business association, or sector association, is an organization founded and funded by businesses that operate in a specific industry .
  • In addition, trade groups attempt to influence the activities of regulatory bodies.
  • The main media published by trade associations are as follows:
  • Industry trade groups sometimes produce advertisements, just as normal corporations do.
  • The Association of Master Upholsterers is an example of a trade association.