Trade Agreements and Globalization

• Limited access to markets leads to lower incomes and poorer living standards.
• Countries with limited market access have less to invest in education and healthcare, hindering development.
• Trade bloc membership can increase job availability, improving income and living standards.
• Deindustrialization from cheaper imports can cause the decline of industrial areas.

Trade Agreements and Globalisation

• Trade agreements involve countries forming blocs to encourage trade and economic cooperation.
• Trade agreements promote globalization by boosting trade, potentially leading to increased investment from other countries.
• Trade agreements can lead to freer movement of people for work, increasing links between countries.
• Bilateral agreements enable greater flow of goods and labor between two countries.
• Agreements like the WTO facilitate trade by providing a forum for negotiations, encouraging global trade.
• Trade agreements are necessary because countries need to act as a bloc to negotiate on a global scale due to unequal power.
• Without trade agreements, quotas and tariffs will act against globalization.

Differential Access to Trade

• Trade bloc members can trade and develop more easily due to tariff-free access to larger markets.
• Trade blocs with HDE countries, like the EU, have many wealthy consumers, increasing sales.
• Trade blocs maintain trade barriers, like tariffs, for countries outside the bloc, limiting their market access.
• LDE countries may struggle to access large, wealthy markets due to high tariffs.