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Advantages And Disadvantages Of Regional Trading Blocs

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Introduction
• Regional trading blocs are formed when countries within the same region opt to protect themselves from imports coming from other world regions. Trading blocs are a type of economic integration that is world trade patterns.
• When several countries come together in a certain region in order to reduce or eliminate barriers that slow down or hinder trade on goods manufactured by member countries they form what is known as a Free Trade
• A customs union involves the removal of tariff related barriers between member states, while also putting in place of a common external tariff against non-members.
• Preferential Trade Areas are formed when countries within a geographical region agree get rid of tariffs or reduce them, on certain goods imported from members of the same PTA. This is usually the first step made towards the formation of a trading bloc.
• Another critical and significant step when it comes to economic integration is the Common market it occurs when member countries are able to trade goods and services freely. Also tariff barriers are removed or reduced and eliminated. They require a lot of co-operation and unification in terms of governing policies and laws if they are to be set up correctly.

Advantages of economic blocs

• Economic blocs are meant to make it easier to access each other’s markets thus trade between member states is most likely to increase. Trade is likely to increase when products that are made more efficiently are introduced

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