Question
What benefits do nations get by forming trading blocs?

Answer

Countries with geographical proximity, similarity and complementarities in trading item form trading blocs. These develop as a response to failure of global organisation to speed up intra-regional trade. The main benefits arising from trade blocs are:
  • Increase intra-regional trade by removing trade tariffs within member nations.
  • Have a greater say in international market as they have more power as trading bloc than as an individual nation.

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