1. What is todays lesson about?

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

4. HDI

5. 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)

6. Economic Groupings

7. 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

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

9. How would you group these countries?

10. How would you group these countries?

11. How would you group these countries?

12. How would you group these countries?

13. How would you group these countries?

15. The percentage of world average wealth per person in 2006

16. HDI Index in 2006

18. 2.5 : Staying connected : global groupings

19. 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

24. 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.