Pugel 17e · International Trade
Chapter 12 · Trade Blocs and Trade Blocks
This chapter examines two types of trade barriers that are intended to discriminate between foreign countries. A trade bloc has lower or no barriers for trade between its members, while they maintain higher barriers for trade with outside countries. A trade embargo or trade block places extra barriers against trade with a specific foreign country, usually because of a broader policy disagreement. There are four major types of trade or economic blocs: free-trade area, customs union, common market, and economic union.
教材导入与手册摘录
This chapter examines two types of trade barriers that are intended to discriminate between foreign countries. A trade bloc has lower or no barriers for trade between its members, while they maintain higher barriers for trade with outside countries. A trade embargo or trade block places extra barriers against trade with a specific foreign country, usually because of a broader policy disagreement.
There are four major types of trade or economic blocs: free-trade area, customs union, common market, and economic union. WTO rules generally call for equal trade barriers against all other countries (at least those that are also members of the WTO)—the most-favored-nation principle. But the WTO rules also have a few exceptions, including an exception for a trade bloc that achieves substantially free trade among its members.
A trade bloc can have several effects on the well-being of its member countries and the world overall. We usually analyze trade blocs by comparing them to countries maintaining barriers against all other countries. To the extent that forming or joining the trade bloc results in lower prices in an importing member country, the country and the world gain as additional trade is created. To the extent that forming or joining the trade bloc results in shifting the source of a member country’s imports from low-priced suppliers in countries outside the trade bloc to higher-priced partner suppliers, the country and the world lose as trade is diverted from low-cost to higher-cost producers. The net effect depends on whether the gains from trade creation are larger than the losses from trade diversion. There are also possible dynamic gains from forming or joining a trade bloc, including gains if extra competition within the larger, bloc-wide market area leads to lower prices, lower costs, or greater innovation, gains if scale economies are achieved within the larger area, and gains if consumers obtain access to product varieties produced in partner countries.
For the European Union, most estimates are that the EU gains from its internal free trade in manufactures, because trade creation has been larger than trade diversion, and because there are probably also dynamic gains, although these are harder to measure. Additional gains came as the move toward a true common market in 1992 removed nontariff barriers and freed resource movements. However, the EU also incurs substantial losses from its protectionist common agricultural policy. In 2004, 10 additional countries joined the EU, in 2007 two more, and in 2013 one more (Croatia), bringing the total number of members to 28. Integration of the new members has been relatively smooth, though some features of EU policies have been phased in slowly for them.
核心知识点
Types of Economic Blocs
There are four major types of trade or economic blocs: free-trade area, customs union, common market, and economic union. WTO rules generally call for equal trade barriers against all other countries (at least those that are also members of the WTO)—the most-favored-nation principle. But the WTO rules also have a few exceptions, including an exception for a trade bloc that achieves substantially free trade among its members.
- Free-trade area
- : Members remove trade barriers among themselves but keep their separate national barriers against trade with the outside world.
- Customs union
Is Trade Discrimination Good or Bad?
In 2016 the United Kingdom voted to leave the EU (Brexit). A key issue for the separation will be how to avoid border checks that would limit movement of people and goods along the land border between Ireland and Northern Ireland. The overarching decision is whether the separation will be a “soft Brexit” or a “hard Brexit,” with the latter being more assertive of British sovereignty over laws, regulations and rules, but also more disruptive of industries and business activities.
- It depends, first, on what you compare it to.
- Compared to
- free-trade policy
The Basic Theory of Trade Blocs: Trade Creation and Trade Diversion
A trade bloc can have several effects on the well-being of its member countries and the world overall. We usually analyze trade blocs by comparing them to countries maintaining barriers against all other countries. To the extent that forming or joining the trade bloc results in lower prices in an importing member country, the country and the world gain as additional trade is created.
- Trade creation
- is a source of gains. It occurs whenever economic integration leads to an increase in the total volume of trade. Total trade increases because:
- Consumption of high-cost domestically produced goods in a member country is replaced by imports of these same goods produced at lower cost in some other member country.
Other Possible Gains from a Trade Bloc
A trade bloc can have several effects on the well-being of its member countries and the world overall. We usually analyze trade blocs by comparing them to countries maintaining barriers against all other countries. To the extent that forming or joining the trade bloc results in lower prices in an importing member country, the country and the world gain as additional trade is created.
- Increased competition within the bloc can lower prices.
- Increased competition within the bloc can lower production costs.
- Expanded production within the bloc can lead to achieving economies of scale.
The EU Experience
This chapter examines two types of trade barriers that are intended to discriminate between foreign countries. A trade bloc has lower or no barriers for trade between its members, while they maintain higher barriers for trade with outside countries. A trade embargo or trade block places extra barriers against trade with a specific foreign country, usually because of a broader policy disagreement.
- When is a trade embargo more likely to work? Actual experience:
- Big countries pick on small ones.
- Embargoes have more chance of success if they are sudden and comprehensive when first imposed.
North America Becomes a Bloc
The North American Free Trade Area (NAFTA) began in 1994, subsuming the previous Canada-U.S. Free Trade Area. NAFTA has eliminated tariffs, reduced some nontariff barriers, and liberalized trade in services and cross-border business investments. The formation of NAFTA was controversial. In Mexico there were fears of jobs lost to more productive U.S.
- The formation of the North American Free Trade Area (NAFTA) went through two steps:
- The Canada-U.S. Free Trade Area (CUSFTA) was created in January 1989.
- In 1990 the U.S. and Mexico began negotiations on a free-trade agreement, and Canada joined the talks in 1991. The NAFTA treaty replaced CUSFTA in January 1994.
Trade Embargoes
9.Trade embargoes are usually imposed by large countries that are important in the trade of the target country. An embargo has a better chance to succeed if it is imposed suddenly rather than gradually because a sudden interruption of economic flows damages the target country by a large amount for some time before it can develop alternatives.
- Trade blocs:
- Each member country can import from other member countries freely, or at least with lower tariffs or nontariff barriers.
- Trade embargoes (trade blocks):
Trade Barriers Designed to Discriminate
This chapter examines two types of trade barriers that are intended to discriminate between foreign countries. A trade bloc has lower or no barriers for trade between its members, while they maintain higher barriers for trade with outside countries. A trade embargo or trade block places extra barriers against trade with a specific foreign country, usually because of a broader policy disagreement.
- Trade blocs:
- Each member country can import from other member countries freely, or at least with lower tariffs or nontariff barriers.
- Trade embargoes (trade blocks):
案例与应用
For the European Union, most estimates are that the EU gains ...
For the European Union, most estimates are that the EU gains from its internal free trade in manufactures, because trade creation has been larger than trade diversion, and because there are probably also dynamic gains, although these are harder to measure. Additional gains came as the move toward a true common market in 1992 removed nontariff barriers and freed resource movements.
查看教材摘录
For the European Union, most estimates are that the EU gains from its internal free trade in manufactures, because trade creation has been larger than trade diversion, and because there are probably also dynamic gains, although these are harder to measure. Additional gains came as the move toward a true common market in 1992 removed nontariff barriers and freed resource movements. However, the EU also incurs substantial losses from its protectionist common agricultural policy. In 2004, 10 additional countries joined the EU, in 2007 two more, and in 2013 one more (Croatia), bringing the total number of members to 28. Integration of the new members has been relatively smooth, though some features of EU policies have been phased in slowly for them.
The North American Free Trade Area (NAFTA) began in 1994, subsuming ...
The North American Free Trade Area (NAFTA) began in 1994, subsuming the previous Canada-U.S. Free Trade Area. NAFTA has eliminated tariffs, reduced some nontariff barriers, and liberalized trade in services and cross-border business investments. The formation of NAFTA was controversial. In Mexico there were fears of jobs lost to more productive U.S.
查看教材摘录
The North American Free Trade Area (NAFTA) began in 1994, subsuming the previous Canada-U.S. Free Trade Area. NAFTA has eliminated tariffs, reduced some nontariff barriers, and liberalized trade in services and cross-border business investments. The formation of NAFTA was controversial. In Mexico there were fears of jobs lost to more productive U.S. and Canadian firms, as well as the loss of political sovereignty as NAFTA committed Mexico to change a number of its government policies. In the United States there were fears of job losses to low-wage Mexico, as well as complaints about linking with a country that has a corrupt political system and poor environmental protection. Proponents in both Mexico and the United States hoped that NAFTA would commit the Mexican government to maintain and extend its market-oriented reforms.
6.The standard estimates are that Mexico has probably gained from NAFTA ...
6.The standard estimates are that Mexico has probably gained from NAFTA, as trade creation is likely to have been larger than trade diversion, and Mexican firms also gain from better access to selling to the large U.S. market. In Mexico, the gains are largest for those sectors tied to exports and for those resources (including less-skilled labor) that are relatively abundant in Mexico.
查看教材摘录
6.The standard estimates are that Mexico has probably gained from NAFTA, as trade creation is likely to have been larger than trade diversion, and Mexican firms also gain from better access to selling to the large U.S. market. In Mexico, the gains are largest for those sectors tied to exports and for those resources (including less-skilled labor) that are relatively abundant in Mexico. The standard estimates are that the United States and Canada also probably have gained, with gains to those export sectors that can increase their sales to Mexico and to resources that are relatively abundant in these countries, including skilled labor. (There is also some research that suggests that trade diversion has been larger than the standard estimates, so that the net gains from trade creation and trade diversion for the member countries are close to zero.) Outside countries are hurt by trade diver
NAFTA has resulted in substantial increases in trade among the three ...
NAFTA has resulted in substantial increases in trade among the three members. The standard view is that trade creation has been larger than trade diversion, with substantial net gains for Mexico. However, there is also some research that suggests that trade diversion has been large, so that the net gains are close to zero.
查看教材摘录
NAFTA has resulted in substantial increases in trade among the three members. The standard view is that trade creation has been larger than trade diversion, with substantial net gains for Mexico. However, there is also some research that suggests that trade diversion has been large, so that the net gains are close to zero. Studies of Canada indicate that it gained from increased competition that forced high-cost plants to close down, from the achievement of scale economies through longer production runs as access to the large U.S. market became assured, and from increased innovation driven by increased competition and assured market access. In addition to the trade effects, Mexico has also gained from the substantially increased inflows of direct investment by foreign firms that have located production in Mexico to serve the NAFTA area. NAFTA has not caused massive shifting of total empl
课件纲要
- Trade Barriers Designed to Discriminate
- Types of Economic Blocs
- The WTO and Trade Blocs
- Is a Trade Bloc Good or Bad?
- The Basics Theory of Trade Blocs: Trade Creation and Trade Diversion
- Trade Diversification versus Trade Creation in Joining a Trade Bloc
- Other Possible Gains from a Trade Bloc
- The European Union
- North American Becomes a Bloc
- Trade Blocs Among Developing Countries
- Trade Embargoes
- Effects of an Embargo on Exports to Iran
习题精选
题目 1
Which of the following allows member countries to import from other member countries freely, but imposes trade barriers against imports from outside countries?
- A A trade embargo
- B A trade bloc
- C A cultural union
- D A trade union
答案：B · A trade bloc
题目 2
Which of the following features does a free-trade area necessarily have?
- A Absence of trade barriers among the member nations
- B Equal tariff rates
- C Free movement of factors of production across the member nations
- D Harmonization of all economic policies
答案：A · Absence of trade barriers among the member nations
题目 3
Which of the following is true of a common market?
- A The member countries export similar products to the non-member countries.
- B The member countries do not import goods from the non-member countries.
- C The member countries have identical monetary and fiscal policies.
- D There is free movement of capital and labor among the member countries.
答案：D · There is free movement of capital and labor among the member countries.
题目 4
Which of the following is true of an economic union?
- A Free movement of resources, but restricted movement of goods among the member countries
- B The members have a common set of tariffs among themselves but the external tariff rates are determined independently.
- C Free movement of goods, but restricted movement of resources across the member countries
- D Harmonization of all economic policies in the member countries
答案：D · Harmonization of all economic policies in the member countries
题目 5
Which of the following features does a customs union have?
- A Free trade among those members with similar economic policies
- B Common set of external tariffs
- C Free movement of factors of production
- D Harmonization of all economic policies
答案：B · Common set of external tariffs
题目 6
The Southern Common Market (MERCOSUR) is actually a
- A free-trade area.
- B customs union.
- C economic union.
- D common market.
答案：B · customs union.
题目 7
The North American Free Trade Agreement (NAFTA) is an example of a(n)
- A free-trade area.
- B customs union.
- C common market.
- D economic union.
答案：A · free-trade area.
题目 8
Which of the following is closest to being a full economic union?
- A The North American Free Trade Agreement (NAFTA)
- B The European Union (EU)
- C The Southern Common Market (MERCOSUR)
- D The Trans-Pacific Partnership
答案：B · The European Union (EU)
题目 9
Formation of trade blocs can be considered beneficial because it
- A encourages purchases from higher-cost producers.
- B causes international friction when certain countries are let in the bloc and others are left out.
- C diverts world trade from low-cost producers to high-cost producers by encouraging too much trade within blocs.
- D encourages increased total trade by each member country.
答案：D · encourages increased total trade by each member country.
题目 10
Which of the following states that any trade concession given to any foreign country must be given to all other countries having the same status?
- A The principle of reciprocity
- B The structural adjustment program
- C The most favored nation principle
- D The purchasing power parity theory
答案：C · The most favored nation principle
题目 11
Which of the following refers to trade creation?
- A The net increase in exports when the currency of a country depreciates with respect to a foreign currency
- B The net increase in imports when foreign firms lower the prices of their exports
- C The net volume of new trade that results from the formation of a trade bloc
- D The net change in the volume of trade among member countries when they form a trade bloc
答案：C · The net volume of new trade that results from the formation of a trade bloc
题目 12
Which of the following refers to trade diversion?
- A The volume of trade that is redirected from low-cost exporters to higher-cost domestic firms when the domestic government imposes import restrictions
- B The volume of trade redirected from low-cost exporters to higher-cost trade bloc member countries
- C The amount of the imported goods that is replaced by domestically produced goods
- D The change in the trade pattern such that the good which was formerly imported is now exported as the government subsidizes its production
答案：B · The volume of trade redirected from low-cost exporters to higher-cost trade bloc member countries
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# 第12章 Trade Blocs and Trade Blocks ## 章节概览 This chapter examines two types of trade barriers that are intended to discriminate between foreign countries. A trade bloc has lower or no barriers for trade between its members, while they maintain higher barriers for trade with outside countries. A trade embargo or trade block places extra barriers against trade with a specific foreign country, usually because of a broader policy disagreement. There are four major types of trade or economic blocs: free-trade area, customs union, common market, and economic union. ## 知识点 ### 1. Types of Economic Blocs - 教学说明：There are four major types of trade or economic blocs: free-trade area, customs union, common market, and economic union. WTO rules generally call for equal trade barriers against all other countries (at least those that are also members of the WTO)—the most-favored-nation principle. But the WTO rules also have a few exceptions, including an exception for a trade bloc that achieves substantially free trade among its members. - 支撑要点：Free-trade area - 支撑要点：: Members remove trade barriers among themselves but keep their separate national barriers against trade with the outside world. - 支撑要点：Customs union - 来源类型：manual ### 2. Is Trade Discrimination Good or Bad? - 教学说明：In 2016 the United Kingdom voted to leave the EU (Brexit). A key issue for the separation will be how to avoid border checks that would limit movement of people and goods along the land border between Ireland and Northern Ireland. The overarching decision is whether the separation will be a “soft Brexit” or a “hard Brexit,” with the latter being more assertive of British sovereignty over laws, regulations and rules, but also more disruptive of industries and business activities. - 支撑要点：It depends, first, on what you compare it to. - 支撑要点：Compared to - 支撑要点：free-trade policy - 来源类型：manual ### 3. The Basic Theory of Trade Blocs: Trade Creation and Trade Diversion - 教学说明：A trade bloc can have several effects on the well-being of its member countries and the world overall. We usually analyze trade blocs by comparing them to countries maintaining barriers against all other countries. To the extent that forming or joining the trade bloc results in lower prices in an importing member country, the country and the world gain as additional trade is created. - 支撑要点：Trade creation - 支撑要点：is a source of gains. It occurs whenever economic integration leads to an increase in the total volume of trade. Total trade increases because: - 支撑要点：Consumption of high-cost domestically produced goods in a member country is replaced by imports of these same goods produced at lower cost in some other member country. - 来源类型：manual ### 4. Other Possible Gains from a Trade Bloc - 教学说明：A trade bloc can have several effects on the well-being of its member countries and the world overall. We usually analyze trade blocs by comparing them to countries maintaining barriers against all other countries. To the extent that forming or joining the trade bloc results in lower prices in an importing member country, the country and the world gain as additional trade is created. - 支撑要点：Increased competition within the bloc can lower prices. - 支撑要点：Increased competition within the bloc can lower production costs. - 支撑要点：Expanded production within the bloc can lead to achieving economies of scale. - 来源类型：manual ### 5. The EU Experience - 教学说明：This chapter examines two types of trade barriers that are intended to discriminate between foreign countries. A trade bloc has lower or no barriers for trade between its members, while they maintain higher barriers for trade with outside countries. A trade embargo or trade block places extra barriers against trade with a specific foreign country, usually because of a broader policy disagreement. - 支撑要点：When is a trade embargo more likely to work? Actual experience: - 支撑要点：Big countries pick on small ones. - 支撑要点：Embargoes have more chance of success if they are sudden and comprehensive when first imposed. - 来源类型：manual ### 6. North America Becomes a Bloc - 教学说明：The North American Free Trade Area (NAFTA) began in 1994, subsuming the previous Canada-U.S. Free Trade Area. NAFTA has eliminated tariffs, reduced some nontariff barriers, and liberalized trade in services and cross-border business investments. The formation of NAFTA was controversial. In Mexico there were fears of jobs lost to more productive U.S. - 支撑要点：The formation of the North American Free Trade Area (NAFTA) went through two steps: - 支撑要点：The Canada-U.S. Free Trade Area (CUSFTA) was created in January 1989. - 支撑要点：In 1990 the U.S. and Mexico began negotiations on a free-trade agreement, and Canada joined the talks in 1991. The NAFTA treaty replaced CUSFTA in January 1994. - 来源类型：manual ### 7. Trade Embargoes - 教学说明：9.Trade embargoes are usually imposed by large countries that are important in the trade of the target country. An embargo has a better chance to succeed if it is imposed suddenly rather than gradually because a sudden interruption of economic flows damages the target country by a large amount for some time before it can develop alternatives. - 支撑要点：Trade blocs: - 支撑要点：Each member country can import from other member countries freely, or at least with lower tariffs or nontariff barriers. - 支撑要点：Trade embargoes (trade blocks): - 来源类型：manual ### 8. Trade Barriers Designed to Discriminate - 教学说明：This chapter examines two types of trade barriers that are intended to discriminate between foreign countries. A trade bloc has lower or no barriers for trade between its members, while they maintain higher barriers for trade with outside countries. A trade embargo or trade block places extra barriers against trade with a specific foreign country, usually because of a broader policy disagreement. - 支撑要点：Trade blocs: - 支撑要点：Each member country can import from other member countries freely, or at least with lower tariffs or nontariff barriers. - 支撑要点：Trade embargoes (trade blocks): - 来源类型：manual ## 案例 ### 案例 1: For the European Union, most estimates are that the EU gains ... For the European Union, most estimates are that the EU gains from its internal free trade in manufactures, because trade creation has been larger than trade diversion, and because there are probably also dynamic gains, although these are harder to measure. Additional gains came as the move toward a true common market in 1992 removed nontariff barriers and freed resource movements. ### 案例 2: The North American Free Trade Area (NAFTA) began in 1994, subsuming ... The North American Free Trade Area (NAFTA) began in 1994, subsuming the previous Canada-U.S. Free Trade Area. NAFTA has eliminated tariffs, reduced some nontariff barriers, and liberalized trade in services and cross-border business investments. The formation of NAFTA was controversial. In Mexico there were fears of jobs lost to more productive U.S. ### 案例 3: 6.The standard estimates are that Mexico has probably gained from NAFTA ... 6.The standard estimates are that Mexico has probably gained from NAFTA, as trade creation is likely to have been larger than trade diversion, and Mexican firms also gain from better access to selling to the large U.S. market. In Mexico, the gains are largest for those sectors tied to exports and for those resources (including less-skilled labor) that are relatively abundant in Mexico. ### 案例 4: NAFTA has resulted in substantial increases in trade among the three ... NAFTA has resulted in substantial increases in trade among the three members. The standard view is that trade creation has been larger than trade diversion, with substantial net gains for Mexico. However, there is also some research that suggests that trade diversion has been large, so that the net gains are close to zero. ## 习题 ### 题目 1 Which of the following allows member countries to import from other member countries freely, but imposes trade barriers against imports from outside countries? - A) A trade embargo - B) A trade bloc - C) A cultural union - D) A trade union ### 题目 2 Which of the following features does a free-trade area necessarily have? - A) Absence of trade barriers among the member nations - B) Equal tariff rates - C) Free movement of factors of production across the member nations - D) Harmonization of all economic policies ### 题目 3 Which of the following is true of a common market? - A) The member countries export similar products to the non-member countries. - B) The member countries do not import goods from the non-member countries. - C) The member countries have identical monetary and fiscal policies. - D) There is free movement of capital and labor among the member countries. ### 题目 4 Which of the following is true of an economic union? - A) Free movement of resources, but restricted movement of goods among the member countries - B) The members have a common set of tariffs among themselves but the external tariff rates are determined independently. - C) Free movement of goods, but restricted movement of resources across the member countries - D) Harmonization of all economic policies in the member countries ### 题目 5 Which of the following features does a customs union have? - A) Free trade among those members with similar economic policies - B) Common set of external tariffs - C) Free movement of factors of production - D) Harmonization of all economic policies ### 题目 6 The Southern Common Market (MERCOSUR) is actually a - A) free-trade area. - B) customs union. - C) economic union. - D) common market. ### 题目 7 The North American Free Trade Agreement (NAFTA) is an example of a(n) - A) free-trade area. - B) customs union. - C) common market. - D) economic union. ### 题目 8 Which of the following is closest to being a full economic union? - A) The North American Free Trade Agreement (NAFTA) - B) The European Union (EU) - C) The Southern Common Market (MERCOSUR) - D) The Trans-Pacific Partnership ## 参考答案 - 题目 1: 答案：B | 选项内容：A trade bloc | Topic：Types of Economic Blocs | Difficulty：1 Easy - 题目 2: 答案：A | 选项内容：Absence of trade barriers among the member nations | Topic：Types of Economic Blocs | Difficulty：1 Easy - 题目 3: 答案：D | 选项内容：There is free movement of capital and labor among the member countries. | Topic：Types of Economic Blocs | Difficulty：1 Easy - 题目 4: 答案：D | 选项内容：Harmonization of all economic policies in the member countries | Topic：Types of Economic Blocs | Difficulty：1 Easy - 题目 5: 答案：B | 选项内容：Common set of external tariffs | Topic：Types of Economic Blocs | Difficulty：1 Easy - 题目 6: 答案：B | 选项内容：customs union. | Topic：Types of Economic Blocs | Difficulty：1 Easy - 题目 7: 答案：A | 选项内容：free-trade area. | Topic：Types of Economic Blocs | Difficulty：1 Easy - 题目 8: 答案：B | 选项内容：The European Union (EU) | Topic：Is Trade Discrimination Good or Bad? | Difficulty：1 Easy ## AI / NextLab 使用建议 - NextLab 总览：用贸易分析实验室的理论模块、图表和政策分析工具继续扩展本章内容。 https://digitconnection.ai/nextlab/