Review:
Trade Blocs (e.g. European Union, Nafta)
overall review score: 4.5
⭐⭐⭐⭐⭐
score is between 0 and 5
Trade blocs are agreements between multiple countries to reduce or eliminate barriers to trade among themselves while imposing barriers on trade with non-member countries. Examples include the European Union and NAFTA.
Key Features
- Reduction of tariffs and quotas
- Harmonization of trade policies
- Increased market access for member countries
- Economic cooperation and integration
Pros
- Promotes economic growth and development
- Encourages foreign investment
- Enhances competitiveness of member countries
- Facilitates greater political cooperation among members
Cons
- Can lead to dependency on other member countries
- May exclude non-member countries from benefits
- Could result in loss of sovereignty for member states