• Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

Describe the variations in trade blocs and evaluate the extent to which they promote globalisation.

Extracts from this document...

Introduction

GEOGRAPHY ESSAY Describe the variations in trade blocs and evaluate the extent to which they promote globalisation. Throughout the world, countries have formed many regional trade blocs over the years, and they play an important role in the world trade and economy. But since they started, their effects on globalisation have been much questioned, as globalisation is the other important current in the world economy development. Globalisation is the increased interconnectedness across the globe, in all political, economic, social and cultural divisions. It describes continuous process by which regional economies, societies and cultures have been integrated through a worldwide network of communication and trade. This process has greatly speeded up in the last two decades as technological progress make it easier for people to travel, communicate and do business internationally. But the term especially refers to economic globalisation. This is precisely the integration of national economies into the international through trade, capital flows, FDI (Foreign Direct Investment), migration? So in this economic context, globalisation refers to the removal of barriers between national borders so as to facilitate the flow of goods, services, capital and labour. Globalisation affects the world in various ways. Economically, it realises a global common market which is based on the freedom of exchange of goods and capital. ...read more.

Middle

And finally, we have the EU, Economic (and monetary) Union: this type has all the characteristics of a CM, but in addition, members agree to a uniform set of macroeconomic and microeconomic policies. The European Union is an example of economic union. But some opponents of trade blocs believe that such agreements are detrimental to global free trade. Since the 1960s, an important motivation of development of trading blocs is to compete with the outside world. The fast development of the EU and Japan reminded the United States of its rather decreasing position in the world economy. So the USA started thinking about Canada and Mexico, which are two of its closest countries. So far, Canada and Mexico also wished for their products to enter the American market and to attract more of the American investment. Thus, the three countries formed in 1992 the NAFTA. In addition, NAFTA?s development was an opportunity for establishing a unique relationship between a relatively poor Third World nation and two of the world?s richest countries. But in recent years, trade blocs have been increasingly common and popular in the world. For example, the NAFTA has achieved positive results. Indeed, the links between the USA, Canada and Mexico have increased: US transnational corporations have moved to Mexico and have reaped higher profits, and Canada exports to the USA increased by 80% and by 65% to Mexico in the first five years of NAFTA. ...read more.

Conclusion

Also, there are many other factors more influential in contributing to globalisation that have nothing to do with trading blocs. The most important factors contributing to globalisation include: the growth of TNCs, better technology which makes global communication and transport easier, improved transport and communication which helps reduce barriers of distance, tariff reductions and the promotion of free trade. Examples showing how trade blocs hinder globalisation are the critics of NAFTA within the USA citing the growth of the merchandise trade deficit, as well as Mexico ?swapping? one kind of trade dependence for another and the fact that Mexican government didn?t prepare the country enough for such a change; indeed, Mexican farmers have been really hard hit by it. In conclusion, if we look at the major motivation of a trading bloc, which is competing with other regions and countries, we can say that trading blocs do hamper globalisation to some extent. A prove is the fact that they changed the pattern of the world economy and divided the world into trading areas. But still there isn?t any contradiction in their nature: they both pursue free trade, and they both require their member countries to transfer some of their economies. The difference is that trade blocs concentrate within a region while globalisation is on the global level ?as its name indicates it. Therefore, their contradiction doesn?t lie on their nature, but on their scale. So it is ?normal? that trading blocs and globalisation coexist in the same time. ...read more.

The above preview is unformatted text

This student written piece of work is one of many that can be found in our International Baccalaureate Geography section.

Found what you're looking for?

  • Start learning 29% faster today
  • 150,000+ documents available
  • Just £6.99 a month

Not the one? Search for your essay title...
  • Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

See related essaysSee related essays

Related International Baccalaureate Geography essays

  1. Climate changes in Canada. What consequences derive from the climate change in Canada ...

    However, with the freezing season shortened, transportation by ships and cargo becomes more beneficial. Fisheries It is likely that the salt waters will enter fresh water bodies. This geographical displacement of the ecosystems will also be changed internally as well.

  2. Major inventions that have led to global interconnectedness.

    Innovation # 2: Microprocessors Since their invention in 1970, microprocessors have had a massive impact on the world. The reaches of the microprocessor are now global and impact many lives in some way, shape or form.. Without it, generating the massive quantities of information that we now possess would be

  1. Foreign Talent-Dilemma in Singapore. as we shall explain, illustrate and seek to convince in ...

    All but one of our first Cabinet were foreign-born and, without them, Singapore would not be where we are today. In the private sector, contributions to Singapore's economic development by foreign CEOs and business leaders, as well as their MNCs, are also well-documented.

  2. The Effect of Changing Distance From Toronto's Central Business District on Parking Prices.

    The reasons are that as one moves southwards from the YDI, the Toronto Harbourfront is approached. The Harbourfront offers many attractive features to potential residents: newly built condominiums, waterfront properties, proximity to downtown Toronto, and the Toronto Harbourfront Center, a "cultural center that has song and dance, art and theater, everything you need for a mesmerizing cultural experience" (Benson).

  1. Is the introduction of foreign talent in Singapore beneficial to Singaporeans?

    "Foreign labour policies might be tightened if political stress emerges in the future," says Chua Hak Bin, regional economist at Citigroup in Singapore. "Such a risk cannot be dismissed as foreigners could reach half of the total population." Is the introduction of foreign talent in Singapore beneficial to Singaporeans?

  2. Latin America - history, politics, immigration and literature.

    Although an undocumented immigrant could be someone who accidentally misplaced their passport, this term is generally used to mean illegal person. An accurate assessment of undocumented immigration is difficult to find. A Professor of Education at the Harvard Graduate School of Education has offered the following estimate: After an exhaustive

  1. What are the effects of global warming and initiatives taken by Wales and Iceland ...

    the news, meaning it is difficult for people to contest the evidence. However, as previously stated, people may dispute the facts, underplaying the situation for argument?s sake. Very few people claim to have good knowledge of global warming. In fact, younger students feel they understand global warming than the older generation.

  2. Caribbean Studies. Essay on Caribbean Region

    For example, Albany, New York is roughly 150 miles east of New York City. Place is the description of what it is like to live in a certain place. Examples are government types, climate, diet, etc. Another concept in geography which can be considered is the word territory.

  • Over 160,000 pieces
    of student written work
  • Annotated by
    experienced teachers
  • Ideas and feedback to
    improve your own work