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Explain how trade agreements are a factor in globalisation. - AQA - A-Level Geography - Question 1 - 2019 - Paper 2
Question 1
Explain how trade agreements are a factor in globalisation.
Worked Solution & Example Answer:Explain how trade agreements are a factor in globalisation. - AQA - A-Level Geography - Question 1 - 2019 - Paper 2
Step 1
Trade agreements are formed by countries working together.
Answer
Trade agreements are formal arrangements between nations designed to facilitate and encourage trade relations among themselves. For example, agreements such as NAFTA (North American Free Trade Agreement) encourage economic cooperation by reducing tariffs and other trade barriers.
Step 2
Trade agreements enhance globalisation through economic integration.
Answer
By lowering trade barriers, these agreements promote higher levels of trade between member countries, thereby fostering a sense of economic integration. This can lead to increased investment opportunities and the establishment of multinational corporations, as companies seek to expand their operations across borders.
Step 3
Regional trade agreements facilitate easier access to broader markets.
Answer
Such agreements can lead to the establishment of larger economic blocks, making it easier for member countries to trade within a larger market. For instance, trade agreements between countries in one region can help to streamline processes and reduce costs, making it more attractive to transact with other countries in that block.
Step 4
Trade agreements promote globalization by regulatory harmonization.
Answer
They often encourage countries to align their regulations, standards, and practices, which can facilitate smoother trade. For example, harmonization of agricultural standards can lead to increased trade in food products as compliance becomes more manageable across different jurisdictions.