Global Trading Blocs

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Business is one of the factors that shapes the competition of a country economically, political and socially. Countries normally want to enter into pact with countries that they believe can benefit them symbiotically in terms of trade (Chang & Winters 2002, p.899). However, trade among countries can also take shape with regards to the region; this is where the trading blocs come in. Trading blocs are attributed by two principle characteristics, that is; the reduction or removal of trading barriers and effective unfairness in a sense that such kind of liberalization between member states does not extend to nations outside that trading bloc. In light of these realizations, this essay assesses four major things which include describing six types of economic integration, research on the Gulf cooperation council, discuss three benefits and three costs frequently associated with adoption of Certificate of Origin scheme.

The Major Categories of Trading Blocs

A Trading bloc is defined as a group of nations that come together in some sort of agreement with an intention to enhance trade amongst them or to benefit economically on the cooperation based on economic integration (Dalimov 2009, p.12). some of the major trading blocs are North American Free Trade Agreement (NAFTA), European Union (EU), The Association of South East Asian Nations (ASEAN) and Southern African Development Community (SADC) among others. On the other hand, Economic integration is defined as the unification of the economic policies among various countries through full or partial elimination of non-tariff and tariff constraints on trade activities amongst them before the integration (Dalimov 2011, p.276). This is carried with an aim of lowering the prices...

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Limão, N 2006, Preferential Trade Agreements as Stumbling Blocks for Multilateral Trade Liberalization: Evidence for the U.S, American Economic Review, Vol. 96, No. 3, p. 896-914.

Mansfield, E & Milner, H 2005, The New Wave of Regionalism in Diehl, Paul F.

2005, The Politics of Global Governance: International Organizations in an

Interdependent World, Boulder, Lynne Rienner Publishers.

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Wyplosz, C 2006, Deep economic integration: Is Europe a blueprint? Asian Economic Policy

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World Bank 2000, Trade Blocs: World Bank Policy Research Report, Oxford, Oxford

University Press.

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