Asked in Business & FinanceMergers and AcquisitionsBusiness Globalization
What are some advantages and disadvantages of trading blocs?
April 19, 2012 9:41PM
It's disadvantages are:
1. Non member countries of the trade bloc will be ostracised since trade blocs are created to help only their member countries reduce trade barriers.
2. Member countries will only look out for each other and ignoring the non-member countries.
3. relaxed borders between member countries mean more illegal immigrants manage to get through.
Its advantages are:
1. faster way to remove trade and investment barriers within trade blocs
2. increasing interdependency of neighbouring countries on one another.
3. greater weight and voice on world's political and economic stage when represented as a group.
4.Wider range of goods available..
5. Makes movement of money and goods easier.