MAJOR TRADING BLOCS FULL
MAJOR TRADING BLOCS FREE

Thus the forВmation of an association in which the European countries can work together will lead to less fricВtion and greater chances of world peace. The main reason for this is that the long-standing rivalry between the various European powers has led to two world wars which have greatly disrupted world trade. Trading blocs such as the Common Market have as a long-term aim some form of political unity.

MAJOR TRADING BLOCS FREE

Free trade is impossible on a world scale but within a trading bloc it is possible and industrial and agriВcultural specialization can take place, with benefits in the cheapness and efficiency of production. As internal trade has grown so the exВternal trade of the Common Market has increased substantially, though not as fast as internal trade.ДЇree trade policies allow for more specialization of production in the areas best suited to the making of particular products. This allows for larger-scale and more efficient production which in turn allows members to produce more goods more competitively for export outside the trading bloc. When tradВing restrictions are reduced and goods can pass easily from one country to another, manufacturers within the bloc can reach a much larger market than any single country could provide. Looser trading asВsociations do not enjoy this advantage to the same extent, but some, such as LAFTA (Latin American Free Trade Association), have been formed partly to increase the bargaining power of raw-material producers in their dealings with the industrial consumers.

The Common Market, regarded as a single unit, has a productive capacity and a population almost as great as that of the U.S.A., and as economic and political integration progress its importance as a world economic and political power will increase.

Goals вЂ“ NAFTA was started to achieve the increased opportunities for investments, for protecting the intellectual property rights and to reduce the trade barriers among the members.By forming a close association which can be regarded as a single unit by other countries and trading orВganizations, the member nations of trading blocs gain greater economic strength and greater bargainВing power in world markets.

Members вЂ“ The member states of NAFTA are Canada, Mexico, and the United States of America.

NAFTA stands for North American Free Trade Agreement (NAFTA) which was started on 1 January 1994.

Goals вЂ“ The main aim of this trading bloc is to ascertain the economic development by reducing poverty, providing social justice and by protecting the environment.

There are some other associate members of this trade bloc which are considered as members but cannot avail the tariff benefits. Associate members include Chile, Colombia, Ecuador, Guyana, Peru, and Suriname.

MAJOR TRADING BLOCS FULL

Bolivia is undergoing the process of becoming a full member.

Members вЂ“ The member states of MERCOSUR are Argentina, Brazil, Paraguay, Uruguay, and Venezuela.

Spanish and portuguese is the language spoken by the member states. This trade bloc was being started by the Treaty of AsunciГіn on 26 March 1991, and is known as Mercado Comun del Cono Sur (MERCOSUR).

Goal of EU вЂ“ EU mainly aims at establishing a union which connects all the economic and political aspects of all the member states.

Members вЂ“ The member states of EU are Austria, Belgium, Bulgaria, Croatia, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, Poland, Portugal, Romania, Slovakia, Slovenia, Spain, Sweden, The Netherlands, and the United Kingdom.

It has 28 member countries and is considered as the largest trade bloc with largest number of the participating countries. As time passed it was transformed into European Economic Community (EEC) and later into European Union (EU). Six countries of Europe, initially formulated European Coal and Steel Community (ECSC) in 1951. ASEAN Economic Community (AEC) вЂ“ The main aim of this committee is to built ASEAN into a production powerhouse equipped with all information related to the global economy as a whole.Goals вЂ“ ASEAN was established to attain some of the specific goals such as to enhance the growth of the economy, social progress and development of the culture, promotion of the stability and regional peace.Members в€’ The member states of ASEAN are Brunei Darussalam, Cambodia, Indonesia, Laos, Malaysia, Myanmar, Philippines, Singapore, Thailand, and Vietnam.They are - ASEANДЄSEAN stands for Association of Southeast Asian Nations (ASEAN) and it was started on 8th of August in 1967.

The major trade blocs that are significant and which impact the international business are majorly four different blocs.

Major trading blocs