1. Warm - up
One of the arguments in support of protective tariffs is that they save domestic jobs. Demonstrate this on a graph.
Who are the stake holders when examining free trade issues?
Explain your graph to your study buddy, what is your general opinion about free trade vs protectionism?

2. Economic Integration aka Trade Blocs NAFTA is which type of trade block? - NPR Segment
IB Economics
3.4

3. Preferential Trade Agreements an overview
Give preferential access to certain products from certain countries by reducing or eliminating tariffs or by other trade agreements
Bilateral Trade agreements-
Multilateral trade agreements-
Example: WTO and Most Favored Nation

4. Four Types of Trading Blocs
Free Trade Areas
Customs Unions
Common Market
Economic Union

5. First, assume sovereign states:

6. Free Trade Area
Definition
Specifics
Pros and cons:

7. Customs Union
Definition:
Specifics:
Pros and cons:

8. Common Market Definition: Specifics: Pros and cons:
Variations: A monetary union is a common market with a common currency and a common central bank.
Think Eurozone – more on this later

9. Economic Union
Definition:
Specifics:
Example:

10. Impact of Trading Blocs
Economic integration will
increase competition among producers within the trading bloc.
Facilitate the free movement of goods and services within the bloc
It may increase competition between different trading blocks.

11. Examples of Trading Blocks
Eurozone in the EU – A monetary Union (type of common market)
Pros:
Cons:
Eurozone - A monetary union not a fiscal union on NPR
clip explaining greek debt crisis
NAFTA
ASEAN
CAFTA
APEC