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Economics Essay

In: Business and Management

Submitted By looneyayia
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SESSION 2009-2010
DEPARTMENT OF ECONOMICS SPRING TERM PROFESSOR K. BURDETT

EC100 – ECONOMICS FOR BUSINESS

ASSIGNMENT 2

This assignment is to be handed in to Room 5B.209 for surnames A-L and room 5B.211 for surnames M-Z BEFORE 12.00 NOON on TUESDAY 16th March 2010. Bring your registration cards. You will receive an electronic receipt. You should NOT hand in assignments to your class teacher. Please note that the University has a coursework deadline policy. Therefore, all assignments submitted after the deadline will receive a mark of zero. See page 14 of the EC100 - Economics for Business Handbook for details.

Please make sure that your NAME and that of your CLASS TEACHER and CLASS NUMBER are printed clearly on the front page of your assignment.

You should answer all questions in this assignment.

Please write your answers CLEARLY and write within the spaces provided.

CLASS TEACHER’S NAME:……………………………………………………………
(Block capitals only)

CLASS NUMBER:………………………………………………………………………...

YOUR NAME:…………………………………………………………………………….
(Block capitals only) Answer all questions (5 marks each)

Part 1

1. Distinguish between the following three types of preferential trading areas: a free trade area, a customs union, and a perfect (full) common market.

There are three types of prefrential trading arrangements, a preferential trading agreement is an agreement whereby the trade between the signatories is more relaxed compared to the trade with the rest of the world.
One type of trade agreement is a free trade area is a group of countries with no trade restrictions between within themselves. This is where member countries remove tariffs and quotas between themselves, however they still retain whatever restrictions each member chooses with non member countries. In some events provisons will have to be made to avoid imports coming in from countries with the...

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