Impacts Of The Regional Trading Blocs

Integration and agreements made will reduce tariffs barriers that are associated with trades of goods, services and the factors of produced goods between countries (Hill, 2004). As this paper will demonstrate a proper analysis of how integration will promote global advantages in business, and will deliberate the disadvantages and advantages of integration. Therefore touching basis of contrast and comparing the development of economic stages within a region and the effect on the process of development of business globally.

A regional trade agreement is “where member nations agree to impose lower barriers to trade within the group than trade with nonmember nations,” (Carbaugh, p 529). Regional trade agreements don’t affect each nations domestic policies, it only creates increased trade and relations among certain nations. This type of trading system complements

Europe has been quite successful in integrating its economies because of the various geopolitical and economic activities. The first and foremost reason is that these countries are small and the economy of the one country can be integrated with the economy of the other country. Their integration has been made possible because the aspiration and believe of the different countries are very much similar. Moreover, their cultural and economic history is moreover same. European Union as it has been called now has been the most developed model of the regional integration though challenged by economic crisis now a days.

Regional economic integration represents agreements between countries in a geographic region to reduce tariff and non-tariff barriers to the free flow of goods, services and factors of production between each other. Neighboring countries tend to ally because of their proximity to one another, somewhat similar regional tastes, the relative ease of establishing channels of distribution and a willingness to cooperate with one another for the greater benefit of all allied parties. Theoretically, the concept of regional economic

Regional trade agreements such as the North American Free Trade Agreement (NAFTA) reduced barriers to trade in the form of a cooperative alliance and an elimination of taxes on trade goods between the United States, Canada and Mexico. The influence of this trade agreement was beneficial to businesses because it became easier to trade goods across international borders and it increased the development of standards. The European Union alliance works in a similar way to facilitate trade by standardizing laws and agreements, as well as using a standard currency among all of the countries. The development of these alliances was to increase competitiveness and to decrease inequality. The winners are the larger corporations who have the resources to dominate larger markets. The losers are the small individual and family owned businesses that do not have the same resources to ante up in a global market.

Trade blocs are inter-governmental agreements between states, regions, or countries, to reduce barriers to trade and to bring economic benefits to the participating regions members. There are several types of trading bloc depending on the levels of commitments and arrangement between the members:

Trade agreements facilitate the free exchange of goods and services between nation-states, and contribute to varying degrees to complete economic integration between two or more states. Autarky refers to a non-trading status, a phenomenon rarely seen in today’s increasingly integrated globe. The steps taken to fully integrate are referred to as stages, a categorization that makes evident the variability in degree of integration. At the first stage, a preferential trade area can be set up as a less formal means of encouraging trade by enacting preferential tariffs to target specific countries’ exports (usually developing countries), in addition to other unilateral trade benefits. Free trade areas are the next step up along the full

The purpose of this report is to compare and contrast two regional trading blocs: the EU and ASEAN (Association of Southeast Asian Nations) and also to discuss and analyse the implications for the marketing managers that operate in these blocs. Schott (1991) defines a trading block as a type of intergovernmental agreement that aims to reduce regional barriers to trade for the participating states. This report will look at the similarities and differences between the two blocs in the first part, with the second part looking at the implications for marketing managers and the advantages and disadvantages that they have in both trading blocs. Background information for EU and ASEAN will be considered in this report along with the role of WTO

Free trade blocs are intergovernmental agreements that limit regional barriers to trade by integrating different economies. The four types of trade blocs are Preferential Trade Area, Free Trade Area, Customs Union, and Common Market. The specific trade blocs included in this analysis are Mercosur, North American Free Trade Agreement, European Union.

This article takes the international trade policy as the main research object, and carries on the key research and the analysis to the performance effectiveness in the scope of this article. First it briefly introduces the regional and global trade agreements that I will examine. Then list the member nations, how the trade group formed, and the reasoning behind the agreement historically, politically, and economically.

The current international system is characterized by growth in globalization hence regional integration is becoming a common phenomenon in most parts of the world. As a result of states becoming more interconnected, most of them have opted for regional integration so as to enhance trade between states thus boosting economies of the states as well as the regions as a whole. Besides free trade, regional integration has seen to it the elimination of trade barriers, free movement of goods and people across borders, regional co-operation in issues to do with peace and security within the regions among various other benefits of regional integration. One of the regions that has grown as a result of regional integration is the European Union (EU), which is an economic and political partnership composed of 28 European countries. This paper will focus on the EU and give a theoretical analysis of the Brexit while giving lessons of integration and liberalization based on the Brexit.

The world is under the shadow of globalization and in developed countries, the commercial originations are striving to emerge at regional level. Globalization has enabled the countries to continue their trade activities without the restrictions on tariff, quota and excise duties. Likewise, labor force can be exchanged among the countries without any restriction. The free movement of capital, labor and goods from one country to another is the consequence of globalization.

As a concept that has become common since the 1990s, globalization is described as the technological, economic, cultural, ideological, and economic changes across borders. It can also be regarded as the transformation of the global economy through the anarchy of financial markets or a technological revolution with social impacts. In contrast, regionalization is the growth of societal integration within a specific area that incorporates all the undirected procedures of economic and social interactions among the units in the region. Since these concepts are different in nature, they contain various strategies that are only effective in specific situations.

Regional integration is an agreement between countries enhancing cooperation to achieve political and economic goals. “In order to achieve integration, governments must be willing to enter agreements and create policy in favor of investment and trade with other countries. Regional integration may occur between nations because of common cultural backgrounds, geography, or historical links” (Background, 1995). Regional integration has also led to the existence of institutions such as the World Bank, the World Court, and the International Monetary Fund to help regulate global economic issues.

The case for regional integration is both simple and irrefutable. First we are small and we need to achieve economies of scale. We need to achieve such economies in markets, production, the mobilisation of regional capital for regional use, university education, science and technology, sea and air transport to mention some areas.