What is todays lesson about?

What are the problems with it? How useful is this? What are the problems with it?

HDI

Lesson Objectives To look at 3 types of global groups. To explain global economic groupings. To explain global political groupings. To describe the distribution of trade blocks To RESEARCH your own individual named trade block ( The EU)

Economic Groupings

Development Ladder In the past countries were considered to be MEDC or LEDC. This is too simplistic. Rather development is in a line or development ladder. LDCs MEDCs OPEC NICs LEDCs G8 OECD

The Development Ladder OECD G8 MEDC The Development Ladder OPEC NIC LEDC LDC

How would you group these countries?

How would you group these countries?

How would you group these countries?

How would you group these countries?

How would you group these countries?

The percentage of world average wealth per person in 2006

HDI Index in 2006

2.5 : Staying connected : global groupings

TRADE BLOCS EU - European Union CARICOM – Caribbean Community NAFTA – North American Free Trade Agreement MERCOSUR – Southern Common Market ( Mercado Comun del Sur) COMESA – Common Market for Eastern and Southern Africa ASEAN – Association of Southeast Asian Nations APEC –Asia Pacific Economic Co- operation OPEC- Organisation of Petroleum Exporting Countries

Why do nations belong to trade blocks? Looking at the EU as an example and pages 102 and 103 write down reasons why countries want to belong to the EU Why do nations belong to trade blocs?   Trade blocs bring greater economic strength and security to the nations that join them. This easy to do trade removes internal tariffs that include import or export tax. Trade blocs also protect the members by establishing external tariffs for foreign importers. The EU has gone further and has a currency and some shared legislations. The removal of internal tariffs brings a number of benefits: Markets grow, for example as the EU grew, companies could open there markets to millions more people Firms that have a comparative advantage in the production of a particular product or service should prosper An enlarged market increases demand, raising the volume of production and lowering manufacturing costs per unit Smaller national firms can form a TNC within a trade bloc which makes their operations more cost-effective Members of the EU can acquire structural funds to help develop their economy. The EU also brings political stability to the continent which is hoped to stop any future wars.