4.1.5 Trading blocs

What is a consequence of reduced cost of transport and communication?

• Growth of the global labour force

• Increased significance of global (transnational) companies

• Migration (within and between economies)

• Political change

Which factor involves the movement of people within and between economies?

• Structural change

• Migration (within and between economies)

• Increased investment flows (FDI)

• Reduced cost of transport and communication

What is a result of increased investment flows (FDI)?

• Political change

• Growth of the global labour force

• Structural change

• Increased significance of global (transnational) companies

Which of the following trading blocs is now called USMCA?

• EU and the single market

• ASEAN

• NAFTA

• MERCOSUR

Which trading bloc includes the single market of 27 countries?

• ASEAN

• NAFTA

• EU

• USMCA

Which of the following is a trading bloc in Southeast Asia?

• EU

• ASEAN

• NAFTA

• USMCA

What is a trading bloc?

• An agreement between countries to reduce trade barriers such as tariffs and quotas.

• A type of economic policy that increases tariffs and quotas.

• A form of government regulation on domestic trade.

• A method of increasing trade barriers between countries.

What factors determine the type of trading bloc formed?

• The political alignment of the countries involved.

• The geographical proximity of the countries.

• How closely the members wish to integrate their economies.

• The population size of the countries involved.

Which of the following is NOT a type of trading bloc mentioned in the text?

• Free trade areas

• Customs unions

• Common markets

• Trade embargos

What is the process of more countries joining an existing trading bloc called?

• Trade bloc contraction

• Trade bloc expansion

• Trade bloc dissolution

• Trade bloc isolation