Trade Blocs And The Trade Bloc Essay example

Trade Blocs And The Trade Bloc Essay example

Length: 860 words (2.5 double-spaced pages)

Rating: Strong Essays

Open Document

Essay Preview

“Trading blocs appear to bring countries closer through economic integration Trade blocs may increase cross-border trade between participating countries, but sometimes they present obstacles to a more comprehensive international trade regime that would involve most of the world’s countries, not just a select few. Loss of sovereignty, interdependence and enforced concessions are a price too high.” - Martin Wolfe.

This quote written by Martin Wolfe expresses the feelings of an individual who is against trade blocs. This source suggests that there are very few benefits to a country joining a trade bloc, and instead the trade blocs are purely detrimental to the country and to the people living within the country. “Loss of sovereignty, interdependence and enforced concessions are a price too high.” the aforementioned excerpt from the source suggests that upon joining a trade bloc, countries will lose any and all independence and culture they previously had and will be forced into doing things that may not be in the countries best interest by means of the bigger countries involved in said trade bloc. “Involve most of the world’s countries, not just a select few.” Wolfe is stating that by joining a trade bloc, the country joins the rest of the world in a globalized economy where countries all over the world are connected to each other whether it be a direct connection or not. Those who disagree with Wolfe’s ideas may not see trade blocs as a bad thing, viewing them as a way to help support developing countries and a way to increase and encourage free trade between nations. Citizens inside a country that has benefited from trade blocs and continues to benefit from them may believe that Wolfe’s ideals stem from a tainted perspective on ...

... middle of paper ...

...such as Canada and the United States may become interdependent, however this is incorrect. Canada and the United States continue to have a large network of trade between countries outside of NAFTA and this is largely due to the fact that NAFTA has connected North America to the rest of the world, and helped to strengthen the bond between the three countries.

In conclusion, Wolfe is incorrect in his writing, using biased, over exaggerated and simply childish arguments to get his incorrect point across. The consequences that Wolfe has stated in his source do not represent the true consequences of trade blocs, and the source fails to mention any advantages other than increased trade between border, which even then isn’t discussed as much as it should be. Wolfe believes trade blocs are not worth the consequences, but in truth, the consequences don’t truly exist.

Need Writing Help?

Get feedback on grammar, clarity, concision and logic instantly.

Check your paper »

Latin Americ The Trade Blocs Essay

- In order to bring economic growth, the United Nations created the trade blocs. One of them is formed in Latin American countries and they identify it as the Latin American trade bloc or more recently, the Pacific Alliance blocs. Latin America has a long history with money and political partnerships. Today, the two most noticeable exchange coalitions in Latin America are the Southern Common Market (Mercosur) and the Pacific Alliance. These two alliances speak to more than 80 percent of territorial exchange and more than 90 percent of Latin America 's total national output....   [tags: Spanish language, United States]

Strong Essays
727 words (2.1 pages)

Essay on Trading Blocs

- Trading Blocs Nowadays, the world is increasingly divided into trade blocs. Two types of trading blocs are recognized by the WTO : the free trade areas, where member states have removed all tariff barriers between them but where each member states can set its own tariffs on imports from non member countries ( EFTA, NAFTA, ASEAN, APEC) and the customs union, where countries agree on common tariffs from non members and remove all trade barriers between them ( like the EU, the Southern Common Market MERCOSUR formed by Argentina, Brazil, Paraguay and Uruguay)....   [tags: Economics]

Strong Essays
1871 words (5.3 pages)

Global Trading Blocs Essay

- 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....   [tags: certificate of origin, economics, business]

Strong Essays
2864 words (8.2 pages)

The European Union (EU) vs the North American Free Trade Agreement Essay

- The European Union (EU) vs the North American Free Trade Agreement Introduction The European Union (EU) is the organization which integrates the countries listed below, both politically and economically. It is a customs union, which is an agreement amongst a group of countries to eliminate trade barriers between them on the movement of goods, services, labor and capital, and also to establish a common external tariff on goods and services coming into the union. The EU evolved from the European Coal and Steel Community (ECSC), which was formed in 1951 as a response to the First and Second World Wars to try to ensure future peace in Europe....   [tags: Political Politics International Trade]

Strong Essays
2970 words (8.5 pages)

Essay on My Experience With International Business

- Reflective writing I found this topic so interesting and motivating and I believe that I got some new knowledge and skills after attended this assignment topic. My experience has been successfully expanded as a result of attending classes, to include global approach to the international business. I found out that practice for international business has become little bit complicated due to influence of globalization. I updated my knowledge and skills in such area of international business our group found out during the international business classes that the rules of business for import and export as well as for domestic have been changed because of present opportunity and threats globalizat...   [tags: International trade, Globalization, Trade bloc]

Strong Essays
822 words (2.3 pages)

Essay on Globalization and International Trade

- International Business is a term used to collectively describe topics relating to the operations of firms with interests in several countries. International trade occurs because no single country has the resources to produce everything well. Nations specialize in the production of certain goods and trade with other nations for those they do not produce. More and more companies are recognizing that pursuing opportunities in the global marketplace is the key to their present and future success. There are many advantages of going global such as, new markets, new sources of capital abroad, swifter technological advancement, and more choices for consumers, just to name a few....   [tags: Outsourcing, Offshoring, Free Trade]

Strong Essays
1834 words (5.2 pages)

Essay on Benefits Of Uk Membership For The European Union Outweigh The Costs

- ”Examine the extent to which the benefits of UK membership in the European Union outweigh the costs” Economic integration is the joining of economic policies between different states/regions. This eliminates tariff and non-tariff barriers to the flow of goods, services and factors of production between the regions. Economic integration has varying levels referred to as trading blocs; these are a form economic integration. A trading bloc is a group of nations that have been made a bilateral or multilateral agreement....   [tags: European Union, International trade, Trade bloc]

Strong Essays
1531 words (4.4 pages)

Essay on Free Trade Vs Fair Trade

- Introduction Adam Smith, author of The Wealth of Nations, shows support for free trade and emphasises it as a trade policy which ought to be adopted. Krugman and Obstfeld back Smith's support by stating that the efficiency of trade is increased by free trade and accumulates the national income of countries. Free trade is a theory which suggests that each nation benefits in specialising in an economic activity from which it gains absolute advantage, enjoying absolute superiority over other nations in a specif economical activity (Peng)....   [tags: Economics]

Strong Essays
2355 words (6.7 pages)

Essay about Evaluate the view that ‘unfair terms of trade’ are the primary cause

- Evaluate the view that ‘unfair terms of trade’ are the primary cause of poverty in LDCs (Least Developed Countries). What is the aim of this report. The aim of this report is to evaluate to what degree unfair terms of trade are one of the main causes of poverty in LDC nations. This view is going to be evaluated through different case studies, which show different views of unfair terms of trade. What are ‘unfair terms of trade’. Trade involves the importing of primary products and exploiting of goods and services....   [tags: Economics]

Strong Essays
2165 words (6.2 pages)

Preferential Trade Agreements Essay

- International Trading Blocs Preferential Trade Agreements (PTAs) Preferential Trade Agreements or trading blocs are a form of economic integration in which countries agree to create a free trade area or some form of common market to facilitate trade. This agreement can be in different forms and depths, for instance there is Free Trade Area is a trading bloc that has no tariff, then Custom Union is where there is common level of trade barriers, in Economic unions such as European Union, the member countries have open national policies and a common currency (Euro)....   [tags: International Finance ]

Strong Essays
1452 words (4.1 pages)