Advantages And Disadvantages Of Regional Trading Blocs...

general the advantages and disadvantages of regional trading blocs such as the EU. Discuss the benefits that UB may now enjoy after acquiring a stake in the Nigerian firm, AP. Regional trading blocs are when a group of countries that lie within a similar geographic area protect themselves, through a form of economic integration, from imports from non-members. To explain briefly, there are several stages of economic integration. A political union represents the potentially most advanced type of integration with a common government and is only found in nation states. An Economic and monetary union, which is the type that the EU falls under, involves a one shared economic market, a mutual trade and monetary policy and a single currency. A common market, occurs when the member countries are able to trade freely in all economic resources. It technically means that all the barriers to trade in services, goods, labor and capital are removed. In addition to moving tariffs, non tariff boundaries are reduced or eliminated completely. In order for this type to succeed, there must be shared economic policies and rules directed towards monopoly power and other ty pes of competitive practices. A customs union removes tariff barriers and the realization of a common external tariff against countries who are non members, or third parties. A free trade area is established when countries in the same region agree to reduce or remove barriers to trade on the goods being imported fromShow MoreRelatedAdvantages And Disadvantages Of The European Union1123 Words   |  5 PagesQuestions: 1. Discuss in general the advantages and disadvantages of regional †¨ trading blocs such as the EU. Discuss the benefits that UB may now enjoy after acquiring a stake in the Nigerian firm, AP. United Biscuits (UB) manufactures its products in factories throughout England, Ireland, Belgium, France, and the Netherlands. The advantages and disadvantages of regional trading blocs such as the European Union (EU), since its creation with the Treaties of Rome in 1957, the European Union has shownRead MoreAdvantages and Disadvantages of Regional Integration in Business1200 Words   |  5 PagesAdvantages and disadvantages of regional integration Introduction The chosen trading bloc is the EU. Spain is a member of the European Union. The European Union is an economic and political union of 27 member nations which are located in Europe. The EU was formed the Maastricht Treaty in the year 1993 and it operates through a system of a common market and customs union for the member states who also share a common currency the Euro. The EU is at the sixth and penultimate stage of economic integrationRead MoreEu vs Nafta1729 Words   |  7 PagesNAFTA and EU confront one another. Executive Summary Some would doubt that the formation of NAFTA was the American response to the European Single Act that formed the EU, which is made up of 27 countries. There is nothing to gain for both the blocs. However in some areas, â€Å"peaceful co-existence† and some form of â€Å"stricter ties† between the EU and NAFTA would prove to be beneficial for both. Introduction The NAFTA and the European Union comprising of 27 countries comprise the biggest blocs in theRead MoreRegional Integration Is An Agreement Between Countries With Other Countries Essay835 Words   |  4 PagesRegional Integration Regional integration is an agreement between countries enhancing cooperation to achieve political and economic goals. â€Å"In order to achieve integration, governments must be willing to enter agreements and create policy in favor of investment and trade with other countries. 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The World’s main regional trading blocs Middle East and North Africa (MENA): is a regional economic integration bloc that includes the Middle East and North Africa. The population of the MENA region is about 381 million people, about 6% of the total world population. Map 1: Middle East and North Africa geographical map North American Free Trade Agreement (NAFTA): is a regional economic integration bloc that includes the U.S., Canada, and Mexico. NAFTA represents 450 million people producingRead More Trading Blocs Essay1876 Words   |  8 PagesTrading Blocs Nowadays, the world is increasingly divided into trade blocs. Two types of trading blocs are recognized by the WTO : the free trade areas, where member states have removed all tariff barriers between them but where each member states can set its own tariffs on imports from non member countries ( EFTA, NAFTA, ASEAN, APEC) and the customs union, where countries agree on common tariffs from non members and remove all trade barriers between them ( like the EU, the Southern CommonRead MoreEu and Nafta3107 Words   |  13 PagesKYUNGSIK 08025465 Nowadays, Regional integration by establishing trading bloc seems to be inevitable for most of countries because limited resources like oil and financial capital encouraged them to establish such a trading bloc like NAFTA. Among several trading bloc, European Union evolved more integrated politically and economically over last sixty years. Furthermore, European union have their own flag, parliament, council and commission. Every trading bloc must have their own characteristicsRead MoreRegional Trading Blocs2360 Words   |  10 PagesINTRODUCTION : A regional trading bloc is a group of countries within a geographical region that protect themselves from imports from non-members. Trading blocs are a form of economic integration, and increasingly shape the pattern of world trade. In general terms, regional trade blocks are associations of nations at a governmental level to promote trade within the block and defend its members against global competition. Defense against global competition is obtained through establishedRead MoreImpacts Of The Regional Trading Blocs1192 Words   |  5 PagesWorld War II, the creation of regional economic blocs has become an essential political remedy that gathers countries and nations rather than divide. Essentially, the creation of the economic regional blocs aims to minimize the obstacles between nations that share the same geographic border and to facilitate the circulations of goods and services. In fact, the regional trading blocs differ in terms of political structure and economic objectives, but the rapidity of trading goods and services within the