Distinguish between a free trade area and a customs union?

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  1. Free Trade Areas

    • A free trade area eliminates most, if not all, trade barriers such as tariffs, quotas and preferences on the flow of goods and services between its member countries. However, member countries negotiate trade agreements separately with external countries. The 1994 North American Free Trade Agreement between the U.S., Canada and Mexico, also known as NAFTA, formed the largest free trade area at that time.
     Customs Unions

    • A customs union, in contrast to a free trade area, is a trade agreement in which a group of countries charges a common set of tariffs to external countries, while granting free trade among member countries. It is a higher level of economic integration over a free trade area, but less than a common market, which also allows free movement of resources such as capital and labor between member countries. The European Union, for example, evolved from a customs union to a common market. The addition of common tariffs imposed on external countries differentiates a customs union agreement from a free trade area.


    • Regional economic agreements reflect the level of political cooperation of the countries involved and serve to affirm their political relations. Whether such trade agreements are beneficial to member countries depends on the level of trade creation versus trade diversion. The impact of economic integration on political ties, however, remains unquestionable.

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What is a trade union?

It is a mediatory body which helps to settle disputes between workers and management. Additional answer A more likely purpose is that they fight for their members' rights and better pay. To say they are mediatory bodies forgets that often a mediatory body is needed to help settle a dispute betw ( Full Answer )

What are the difference between trade union and professional bodies?

"I think the difference is that a trade association, or a trade body acts solely in the interest of it's members. That's what they pay the subs for, the subscriptions, the dues. Whereas a professional body, yes, it acts in the interest of it's members. But where that conflicts with the public intere ( Full Answer )

What is customs union?

A customs union is a trade agreement that is organized by a groupof countries in which there is an established set of tariffs onlyfor the countries that are not included in the group. In thismarketing system, the countries that set it are granted free tradeamong themselves.

Is there an IT trade union?

Yes and No. The AFL-CIO has designated the Communication Workers of America to organize IT. However, there is only one such organization, Washtech, in WA. There is no national organizing drive to organize in IT. That said, it is possible for you to start a union or a workers' organization.

What is the effects of custom union and how it is different from a Free Trade Area?

A free trade area is where there are no tariffs between member nations. A customs union goes a step farther and requires all members to have the same external tariff policy to goods coming in from outside the customs union. So, if Countries A & B are in a customs union, they would both charge ( Full Answer )

What do trade unions do?

Trade unions are organizations made up of workers and their representatives that negotiate with employers for pay, benefits, work conditions, and schedules.

What is the difference between Free trade and protectionism?

Free trade is when a country specializes in one or two areas ofgoods or service and allows a trade with other country or countriesthat specializes in different area while protectionism is when acountry decides to restrict to its domestic production and stoptrading with other countries.

How you can distinguish between the concepts of value and customer satisfaction?

the offering will be successful if it delivers value and satisfaction to the buyer. The value reflects the sum of the advantages and costs to the customer. It's a combination of quality, service, and price. Satisfaction reflects a person's judgment of a product's perceived performance in relationshi ( Full Answer )

Who initially proposed the FTAAP Free Trade Area of Asia-Pacific idea?

The APEC Business Advisory Council (ABAC) has proposed that the APEC Leaders at Santiago on November 20-21, 2004 "agree to further examine the feasibility and potential scope and features of a Free Trade Area of the Asia Pacific (FTAAP)." President Ricardo Lagos of Chile, the host of the APEC summit ( Full Answer )

Distinguish between a regulation and a directive in European union law?

Regulations are Directly Applicable under EC Law, which means that they automatically become part of National law of the 27 Member States. Directives on the other hand are not directly applicable as Member States are required to implement Directives choosing the form and methods of how they are impl ( Full Answer )

Why do we have free trade and fair trade?

we have free and fair trade because the prices are lower for some countries and there is more goods and services being made which is good for a company- since they get a lot of $$$

Adavantages of custom union?

Consumers get a wider choice of goods and they also benefit from the advantages of increased productivity which leads to lower prices

What does a free trade area mean?

Free trade means that two or more countries have opened their borders to each others goods free of duties and charges that would otherwise apply.

What are some possible problems that might arise between factory owners and trade unions?

The factory workers may be trying to coerce above market wages or wages so high the factory cannot afford to pay them, which in a free market will result in their being replaced with new workers or force them to accept lower wages. The supply of labor may be limited, in which case, the factory may ( Full Answer )

Can you distinguish between a local area network and a wide area network?

A local area network is typically a relatively small network. A LAN typically only comprises computers within the same building, or perhaps an entire campus. A wide area network on the other hand is a bit larger. A WAN actually connects multiple LANs together to form a large network. The Internet is ( Full Answer )

What is the difference between trade unions and employers association?

A trade Union is an association of employees continuously working for the common good, improved welfare of the workers and their better terms and conditions of work, while an employers Association is a federation of firms that come together to commonly solve postulated or emerging issues that the em ( Full Answer )

Distinguish between International marketing and Foreign Trade?

When a country crosses its national frontiers to market its products it is indulging in international marketing. The vast domestic markets have provided the firms an opportunity for continued growth which finally reaches a point where the possibility of continued expansion levels off.

What is the difference between labor union and trade union?

Essentially they are exactly the same thing. Labor unions are sometimes more associated with a specific companyor group of people. Whereas a trade union may correspond to theentire network of people that are in that profession.

What is usually a result of free trade between countries?

Free trade results in greater international economic integration. The abolishment of tariffs, quotas and other protectionist measures result in lower prices and more choices for consumers, greater world efficiency and efficiency of exporting producers as competition increases. The theory of compara ( Full Answer )

What was the customs union in Germany?

The German Customs Union was started by Prussia in 1818-1834. At that time Germany consisted of 39 sovereign states, each able to charge customs duties. Goods travelling from, say Berlin to Cologne had to pass through at least two other states, which both levied transit duties. The case for creating ( Full Answer )

Eight states were admitted to the Union between 1820 and 1850 How many were free states?

That would be 4 Between 1820 and 1850, eight states were added to the Union: Maine (1820), Missouri (1821), Arkansas (1836), Michigan (1837), Florida (1845), Texas (1845), Iowa (1846), and Wisconsin (1848). Maine, Michigan, Iowa, and Wisconsin were free states, while Missouri, Arkansas, Florida, a ( Full Answer )

What is the difference between a trade organization and a trade professional's union?

A trade association is an organization which is founded bybusinesses that operate in a particular industry. A trade union isan organization of workers who have united on a single platform toachieve common goals. These goals are for the common good such asprotecting the integrity of its trade, achiev ( Full Answer )

What are the differences between trade union and employee association?

An employee association is more prone to lose power and influence through iron-triangles and "group think" than a union, because a union usually understands it's adversarial role with management, while an association often tries to placate it's members and support management's objectives regardless ( Full Answer )

What is the difference between Free trade area and common market?

free trade area A group of countries that invoke little or no price control in the form of tariffs or quotas between each other. Free trade areas allow the agreeing nations to focus on their competitive advantage and to freely trade for the goods they lack the experience at making, thus increasing ( Full Answer )

What is the euro and why would it help foster trade between the countries of the European Union?

Euro is a currency used in Eurozone wich consists of 15 EU member countries (as of 2010) It went into circulation in 2002. The main idea is that single currency in well integrated economic area like the EU maximizes the economic efficiency. Already other EU member countries seek to join Eurozone and ( Full Answer )

Difference between free trade zone and special economic zone?

A free trade zone (FTZ) , also called foreign-trade zone, formerly free port is an area within which goods may be landed, handled, manufactured or reconfigured, and reexported without the intervention of the customs authorities. Only when the goods are moved to consumers within the country in which ( Full Answer )

What is a customs union?

When members of a free trade area: 1) add common external tariffs to the provisions of the free trade agreement 2) Abolish all customs checks between the countries. then the free trade area becomes a customs union.

What is the difference between trade unionism and ideology?

Ideology is the pattern or cluster of ideas accepted by a political party or other voluntary group. Trade unionism is the preference among some workers for organizing or joining a union at their current employer. Union members need not share any ideology, they must just pay dues.

Distinguish between trade promotion and consumer promotion?

Consumer promotions are targeted towards end consumers. Tools include samples, coupons, cash refunds, price packs, premiums, advertising specialties, patronage rewards, point-of-purchase displays and demonstrations, and contests, sweepstakes and games. On the other hand, a trade promotion is directe ( Full Answer )

What is the relationship between Lincoln's goals of preserving the union and freeing the slaves?

President Lincoln is famously quoted as writing: "If I could free all the slaves and preserve the Union I would do that. Lincoln's primary aim was preservation of and restoration of the Union. Slavery was a very distant secondary concern, even though he was well aware that the cause of Civil War w ( Full Answer )

Does the European union allow free movement between countries?

Yes . This is one of the main objectives of the EU. All EU citizens (citizens of an EU member country) have the unlimited right to travel, live and work in any other EU country on tha same basis as citizens of that country.

What does GCI Trading offer customers?

GCI Trading is a company that offers around the clock trading and specializes in Forex (foreign exchange). Other commodities traded include gold, oil, and various indices.

Where can one get customized trading pins?

There are many websites online whereby it is possible to purchase customised trading pins. These websites include "etradingpins" and also "allaboutpins".

What is it that Union Telecard offer to their customers?

Union Telecard offer their customers phone cards, these have the benefits of discounted calls to international countries. They state to have low rates and a great quality service. One may benefit from acquiring a calling card from Union Telecard if they work abroad, or associate with abroad often.

Why was there a conflict between Leon Trotsky and Lenin over the conflict between the trade unions and the new Soviet Union?

After Trotsky asserted that there could be no conflict between thetrade unions and the government, Lenin sought a "compromise" ofsorts between the government and the Mensheviks. He asserted thatboth positions were in error because a workers state had not yetbeen created. What this meant of course wa ( Full Answer )

Is there free and open trade between Mexico and the US?

Yes. The North American Free Trade Agreement (NAFTA) guaranteesthat most goods and services between Mexico and the United States(and Canada as well) flow among the three partners without anyadditional burdens, such as import duties or taxes.