- Distinguish between bilateral and multilateral (WTO) trade agreements.
- Explain that preferential trade agreements give preferential access to certain products from certain countries by reducing or eliminating tariffs, or by other agreements relating to trade.
- Distinguish between a free trade area, a customs union and a common market.
- Explain that economic integration will increase competition among producers within the trading bloc.
- Compare and contrast the different types of trading blocs.
Click here for the stages of economic integration and here for the advantages and disadvantages of trading blocs
- What is the difference between economic integration that is ‘widening’ and ‘deepening’?
- Outline the six stages of economic integration and give examples of each (consider: the absence of trade barriers, common external tariff, factor and asset mobility, common currency and common economic policy) … see also diagrams above (p398 Glanville) or p 310 Blink/Dorton
- Bilateral trade agreements occur between two counties - find examples. Multilateral agreements occur between many countries, e.g. the trade agreements reached under the WTO are multilateral. Regional trade agreements involves agreement between counties within a geographical region - give examples.
- Use the examples of NAFTA and the EU to comment on the pros and cons of economic integration (see also p313D/B; also p518 Welker and p415/416 Tragakes - see link below)