OECD

OECD

1. the organisation for economic cooperation and development. is a group of around 30 of the richest and most powerful countries. the top eight are called the G8.

   • they meet to discuss and provide possible solutions to economic, environmental and social issues.
     • members are always changing too, e.g potential new members include Brazil, China and India.

2. countries can group together for mutual advantage - trade blocs - are a group of countries that make agreements to reduce barriers to trade.

   • e.g by removing tariffs (taxes on important goods) blocs increase trade between members, and members can work together as a larger organisation to trade with non- members. benefits of membership of a trade bloc are linked to two important concepts.
     • economies of scale - the advantages companies gain because of increased sales. theres a larger market for all companies within the trade bloc becuase its easier to trade with all other member countries.
       • this increases sales. more sales means more products need to be made. so companies can buy the raw product costs less to make, so companies can make more profit.