Name and briefly explain the five different types of economic blocks
There are several different ways that countries can group themselves economically. Here are five common types of economic blocks:
Free trade area: A group of countries that agree to eliminate tariffs and other trade barriers on most goods and services traded among them.
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.
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.
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.
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.
What kind of economic block is the EU and what role does it have in Europe’s regional integration?
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
What is the impact of the European currency on the international activities of companies?
What kind of economic block is USMCA? What are the member states and what characterizes the bloc?
United States - Mexico - Canada Agreement
Free Trade Area
no tariff on certain product (NAFTA)
Estatblished trade rules and uniform customs procedures
What kind of economic block is MERCOSUR? What are member states and what characterizes the bloc?
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
What kind of economic block is RCEP? What are member states and what characterizes the bloc?
Brunei-Darussalam, Cambodia, Indonesia, Laos, Malaysia, Myanmar, Philippines, Singapore, Thailand, Vietnam, Australia, China, Japan, South Korea, New Zealand
Free Trade Barriers
What are examples of government intervention and why are nations doing this?
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.
How can tariffs and embargos be used as instruments of government intervention?
Explain how the Singapore government fosters national competitiveness by applying the Tripartism concept
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