Economic Union$ Geography WG.9d O’Leary- Riverbend High School

As a Global Society, the world is increasingly interdependent Economic interdependence fosters the formation of economic unions.

Advantages of Economic Unions More efficient industries Access to larger markets Access to natural, human, & capital resources without restrictions Greater influence on world market

Disadvantages of Economic Unions Closing of some industries Concentration of some industries in certain countries, leaving marginal areas behind (undeveloped) Agribusiness replacing family farms Difficulty in agreeing on common economic policies.

Examples of Economic Unions NAFTA (North American Free Trade Agreement) EU (European Union) ASEAN (Association of Southeast Asian Nations) OPEC (Organization of Petroleum Exporting Countries)

NAFTA (North American Free Trade Agreement) NAFTA went into effect on Jan 1, It links Canada, the US, and Mexico in a free trade “sphere” or group. called to eliminate duties on 1/2 of all U.S. goods shipped to Mexico & phasing out other tariffs (fees) over 14 years. Trade Restrictions were to be removed from many categories, including motor vehicles and automotive parts, computers, textiles, and agriculture. Label your Map

Did you get them Right? rade_Association_(map_of_member_countries).html NOW LABEL YOUR MAP

EU (European Union) There are 25 member countries across Europe Domestically, they attempt to lower trade barriers, adopt a common currency, and move toward convergence of living standards. Internationally, the EU aims to bolster Europe's trade position and its political and economic power. LABEL YOUR MAP NOW

Did you get them all right?

ASEAN (Association of Southeast Asian Nations) This is a free trade agreement among Asian countries-similar to NAFTA NEXT? YOU GUESSED IT: LABEL YOUR MAP

You have the hang of it now!

OPEC (Organization of Petroleum Exporting Countries) OPEC's member countries hold about 2/3 of the world's oil reserves. They supply 40% of world's oil production & 1/2 of the exports. The Organization now has 11 Member Countries LABEL YOUR MAP

GREAT JOB!!