Q8 of 16 Page 9

What benefits do nations get by forming trading blocs?

Countries with geographical proximity, similarity, and complementarities in trading item form trading blocs. These develop as a failure of a global organisation to speed up inter-regional trade. The main benefits are following:-

• These regional blocs remove trade tariffs within the member nations and encourage trade.


• These trading blocs have more power than individual nations in the international market.


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