Advantages And Disadvantages Of Regional Trading Blocs

Both advantages and disadvantages can be found in regional trading blocs. I am going to discuss about it, taking into consideration as it has been suggested the context of the Europian Union, since it is an interesting example of regional trading block. Governments impose tariffs with the aim of protecting their economies and to control the prices. They intervene in trades for two main reasons: the first one is economic whereas the second one is political. As far as the economic explanation is concerned, the aims are to prevent the unemployment, to promote the industrialisation and to protect the infant industry. On the other hand the political reason is related to the goal of regulating trades with unfriendly countries and preserve the national identity. The EU was created after the Second World War to prevent the continent from future wars and to promote free trades of some goods between the member States. Unfortunately during the 70s, due to some international events, the trades between the participants became harder. None the less after this time of instability free trades between the countries got back. However it is only from 2002 that the EU definitively achieved is goal of free trade. The EU trade policy should be seen in the context of two current realities. The first is the importance of the Union itself as the protagonist the world stage. The second concerns the way in which globalization is changing the International context. The EU is the largest economyShow MoreRelatedAdvantages And Disadvantages Of Regional Trading Blocs Such As The Eu1446 Words   |  6 Pagesgeneral 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. 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