IB Economics HL 4.4.4 Disadvantages of trading blocs
IB Economics HL 4.4.4 Disadvantages of trading blocs
Students practise identifying key disadvantages of trading blocs—especially trade diversion, loss of policy autonomy, and fiscal dependency—though no recent exam excerpts support…
How this is tested
- explain loss of sovereignty as a disadvantage of joining a trading bloc
- analyse trade diversion by comparing lower-cost world supply with protected bloc imports
- evaluate trading blocs against wider multilateral trade negotiation challenges