Fragebogen Teil 3

There are several different ways that countries can group themselves economically. Here are five common types of economic blocks:

1. Free trade area: A group of countries that agree to eliminate tariffs and other trade barriers on most goods and services traded among them.

2. Customs union: A group of countries that have eliminated tariffs and other trade barriers on most goods and services traded among them, and also have a common set of tariffs for imports from outside the block.

3. Common market: A group of countries that have eliminated tariffs and other trade barriers on most goods and services traded among them, and also allow the free movement of factors of production (such as labor and capital) among them.

4. Economic union: A group of countries that have eliminated tariffs and other trade barriers on most goods and services traded among them, allow the free movement of factors of production among them, and also have a common currency.

5. Political and economic union: A group of countries that have eliminated tariffs and other trade barriers on most goods and services traded among them, allow the free movement of factors of production among them, have a common currency, and also have a high degree of political integration, such as a single government or a single foreign policy.

Common Market and Economic union:

Member Countries strive to eliminate border controls, harmonize product

and labeling standards, and establish region-wide policies for energy,

agriculture, and social services

Standardite laws and regulations regarding competition

United States - Mexico - Canada Agreement

Free Trade Area

• no tariff on certain product (NAFTA)

• Estatblished trade rules and uniform customs procedures

Members:

largest Countries in south-Anerica (Argentina, Brazil, Paraguay, and Uruguay)

Economic Bloc:

Common Market

Content:

MERCOSUR established the free movement of products and services, a

common external tariff and trade policy, and coordinated monetary and fiscal

policies

Brunei-Darussalam, Cambodia, Indonesia, Laos, Malaysia, Myanmar, Philippines, Singapore, Thailand, Vietnam, Australia, China, Japan, South Korea, New Zealand

Free Trade Barriers

Taxes, subsidies, price controls, regulations, minimum wage legislation, and government bailouts are all examples of different kinds of government intervention in the economy.

Promoting fair competition. Through antimonopoly regulations, the government prevents unfair competition practices such as collusion and predatory pricing.