Question
State the aims and characteristics of ‘Regional Trade Blocs’ of the world with examples.
Solution
Followings are the aim and characteristics of the ‘Regional Trade Blocs’ of the world:
(i) The main aim of the regional trade blocs is to enhance and encourage the trade between countries with geographical proximity.
(ii) To encourage the complementarities in trading items.
(iii) The aim is to curb the restrictions on trade of the developing world.
(iv) The regional trading blocs mainly developed and promoted as the response to the failure of the global organisations.
(v) These regional trading blocs has eliminated the trade tariffs of their own member nations to promote free trade.
(vi) ASEAN, SAFTA, EU, OPEC are some examples of the regional trading blocs of the world.
