Explain the concept of trade blocs.

Economics Trade Barriers Questions



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Explain the concept of trade blocs.

Trade blocs refer to groups of countries that come together to form a regional trading agreement. These agreements aim to promote economic integration and cooperation among member countries by reducing or eliminating trade barriers such as tariffs, quotas, and other restrictions on the movement of goods and services. Trade blocs can take various forms, including free trade areas, customs unions, common markets, and economic unions. Examples of trade blocs include the European Union (EU), North American Free Trade Agreement (NAFTA), and Association of Southeast Asian Nations (ASEAN).