1. Ch. 47: World trade patterns & trading blocs

2. World Trade (WT) Patterns What have the trends been in WT over the past 60 years in terms of amounts & regions? Do getting started Reasons for ↑ in WT better transport & communications ↓ trade barriers ↑ multinationals travel & consumer awareness trade agreements  communism (break-up USSR)

3. Trading blocs Definition = ? trading blocs: a group of countries situated in the same region (usually) that join together and enjoy trade free of quotas, tariffs and other trade barriers E.g. =? EU, NAFTA (North American Free trade Agreement), CARICOM (Caribbean Community) http://www.youtube.com/watch?v=YDUq0DINh Ykhttp://www.youtube.com/watch?v=YDUq0DINh Yk (3:50)

5. Advantages of trading blocsDisadvan’s of trading blocs To members;  As with free trade generally (see P.210)  ↑ FDI (What is this?)  ↑ co-operation, ↓ tension To members;  Still not world free trade  Membership & other compliance costs  Overdependence on blocs To non-members  Trade barriers when trading with the bloc Exam Practice