When Uruguay joined the MERCOSUR, there was a surge in imported iron ore from Brazil while imports from the USA declined. Draw on Trade Bloc theory to discuss the following.

Required

a) Use a diagram to explain how the EU was beneficial overall for Uruguay.

b) Refer to the diagrams in (a) to explain areas & meaning of (i) trade creation, and (ii) trade diversion. No need for a Diagram here.
c) In 2020, there was technological progress in Brazil that increased the efficiency of iron ore mining. Use diagrams to to discuss the effects of this for Uruguay in terms of (i) trade creation, and (ii) trade divers

Answer rating: 100% (QA)

a One way to explain how the EU was beneficial overall for Uruguay is to use a diagram of the EUs Free Trade Area In a Free Trade Area two or more cou... View the full answer