Trading blocs

Question 1

Trade blocs

Answer 1

Groups of countries situated in the same region that join together and enjoy trade free of tariffs, quotas and other trade barriers

Question 2

Pros of trading blocs

Answer 2

• Goods are cheaper
• More consumer choice
• Faster economic growth
• Access to larger markets
• More competition (higher quality goods)
• EOS

Question 3

Cons of trade blocks

Answer 3

• Encourage regional trade rather than global (less globalisation)
• More expensive for gov and tax payers
• Merging (creation of monopolies)
• Interdependence of countries