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• #Advantages of trading blocs free

Some of the global trade blocs North Atlantic Free Trade Association or NAFTA: It is a kind of customs union which allows its members to reduce barriers to the sale of goods as well as reduce restriction on the movement of production factors like finance and manpower.

Member countries agree on establishing common policies on various economic aspects including interest rate, common currency as well as taxation. But while trading with non-members they establish their own quotas and tariffs. The trade barriers like quotas and tariffs are abolished or reduced y the member countries while trading with each other. The participant countries agree to eliminate or minimize barriers to trade with each other and for trading with non-members they establish common quotas and tariffs. Various types of trade blocs have been designed to control global economies like: Customs Union:

It can deprive exporters of new trading opportunities and countries from importing products from other countries at competitive rates. In this way, a trade bloc can significantly affect the concept of global trading. Though a trade bloc allows the member states to trade freely with each other but they cannot trade with the countries that are not member rot this agreement. The information provided in this write-up can help you to know 'what is a trade bloc' more precisely. This agreement allows the participating states to trade easily with each other as much as possible. It can be defined as an agreement between various international governments or intergovernmental regional organizations in which barriers of regional governments on international trade are minimized or abolished between the state participating in it. A trade bloc is one of the arrangements made by several countries to protect their economies from competition from other countries.