Question

Discuss 4 specific conclusions you can make about Trade Blocs. Explain your reasoning

Explain what is meant by Regional Economic Integration in your own words.  

Answer 1

Regional economic integration systems have undergone significant development designed to achieve various cultural, social and political purposes. Many of the world's countries are members of one or more trade blocs called the Regional Integration Agreement / Arrangement (RIA). There has been a global movement towards the creation of new regional structures and reinforcement of existing ones. Inspired by the European Economic Country (EEC), now more popularly known as the European Union (EU), the developing countries have developed several regional integration schemes, particularly in Latin America and Africa

A trade barrier is a common term that explains any policy or instruction on the regime which restricts international trade. It may take several types, including: import duties, import licenses, export licences, import quotas, tariffs, subsidies, non-tariff trade barriers, needs of local substances. Most barriers to trade operate on the same principle, i.e. the duty of some sort of cost to trade that raises the price of the exchanged goods. Certain obstacles to trade include different cultures, customs, community, rules, language, and exchange.

When a country wants to join the EU, the principles and values upon which the EU is founded must be respected. Under the treaties, contender countries will respect the values set out in European Union agreements earlier before they can join the EU. According to the agreements, "the Union is based on the principles of democracy, democratic structure, respect for human rights and philosophies that are common to the Member States

Regional economic integration has allowed countries to concentrate on issues related to their developmental stage and to promote neighborhood trade.
Free-trade zone. This is the most fundamental form of economic cooperation. Member States eliminate all barriers to trade between themselves but are free to establish trade policies with non-member states Customs Union independently. As in a free-trade zone, this form allows for economic cooperation. Barriers to trade between member states are eliminated. The principal distinction from the free trade region is that members tend to handle trade equally with non-member countries.

Common Market This form helps the member countries to establish economically integrated markets. Barriers to trade are abolished, as are any limitations on labor and capital movement between Member States. Like the customs unions, trade with non-member nations has a common foreign policy. The primary gain for workers is that they no longer need a visa or work permit to work in a single sector in another Member State.