trading blocs

Question 1

what is trading bloc

Answer 1

associations between different governments to promote and manage trade for a particular region

members sign aggreements to remove or reduce protectionsism barriers between them

has helped trade libersilition by removal of trade restrictions

Question 2

examples of trading blocs

Answer 2

NAFTA
EU
ASEAN

Question 3

adv of a trading bloc

Answer 3

removal of trading blocs means country becomes cheapest supplier for other counteries in the bloc.this can lead to increase in demand

businesses are able to obtain their sup-pliers more cheaply than before, which lowers their cots, increases profibaility

busiensses more access to skilled workers which can imporve efficincy and quality of production

expans the market for firms, increase their sales volume, lower their costs because of economies of scale

Question 4

dis of trading bloc

Answer 4

small firms in that country that just foined trading bloc may be forced out of busienss becomes of competition from larger firms
icnreasing unemployment levels in the country

can become more expensive to import products from counteries not in the bloc once country becomes part of trading bloc