On the other hand, the customs union provides an opportunity to make a common external tariff that is pertinent to each of the members.
#Trade blocs help countries by free
Indeed, FTA was found to have more benefits, since it did not only allow the free movement of goods and services but also allowed people to interact without restrictions among the member countries. In this regard, it was noted that most countries preferred free-trade areas rather than the formation of customs unions. The second aspect that was identified was conjoined with the prevalence of free trade area is contrary to the unions. This can result in severe deterioration of the economies, because most countries will allow their counterparts to trade freely, but the similar policies are provided across various blocs that they have joined. Therefore, the countries commit themselves to agreements that liberalise trade with many countries without adding economic advantages.
This implies that, if a country needs to join several trading blocs, there are no additional privileges occasioned by the multi-membership.
It was established that the trading blocs end up stipulating overlapping agreements so that various coalitions have made similar provisions to the member countries.
#Trade blocs help countries by update
In this context, flexibility is the ability of trading blocs to disband, reorganise, and update the existing policies with the aim of aligning them to the changing global dynamics (Melatos and Dunn 1). While analysing a case study that sought to investigate the flexibility of trading blocs, it was established that these coalitions encounter severe shortcomings. This paper seeks to analyse some of the issues that revolve around trading blocs and WTO bearing in mind that they are major players when it comes to global trade. Besides the blocs, international trade is affected by the policies and operations of WTO that is mandated to oversee the running of this trade. However, the formation and operation of these blocs have experienced critical challenges that are pertinent to their prosperity. In an attempt to foster universal trade, countries come together to form blocs that help to liberalise the movement of business people across borders.
When considering a trade, international relations become one of the most critical aspects, because countries cannot strive alone without exchanging products.
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