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Illustrate your understanding of the term Trading Bloc. - Leaving Cert Business - Question 9 - 2012
Question 9
Illustrate your understanding of the term Trading Bloc.
Worked Solution & Example Answer:Illustrate your understanding of the term Trading Bloc. - Leaving Cert Business - Question 9 - 2012
Step 1
Definition of Trading Bloc
Answer
A trading bloc is a group of countries that come together to form a free trade area, common market, or customs union. In such arrangements, these countries agree to eliminate or significantly reduce tariffs and other trade barriers for goods and services exchanged among themselves. This cooperation facilitates easier and increased trade, promoting economic integration and efficiency.
Step 2
Examples of Trading Blocs
Answer
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The European Union (EU): A notable political and economic union of 27 European countries that have established a single market allowing for the free movement of goods, services, capital, and people.
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North American Free Trade Agreement (NAFTA): Now superseded by the United States-Mexico-Canada Agreement (USMCA), NAFTA was an agreement between the United States, Canada, and Mexico aimed at removing trade barriers and promoting economic cooperation among the three countries.