Business Trading BLOCS

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Trading BLOCS

Advantages

  • Lower prices and more varied products
  • Larger market
  • Boost direct investments
  • access to cheaper and more abundant capital
  • encourage specialisation
  • decrease monopoly power as market increases
  • minimize potential conflict between members
  • offers new opportunities for trade and investment

Disadvantages

  • Shutting down the domestic industry
  • increased economic dependence
  • bring up the trade diversion
  • retaliation from non trade members
  • Loss of state sovereignty

Evaluation

Trading BLOCS are much more beneficial to businesses, depending on whether or not other countries that sell necessities such as fuels and produce increase their tariffs due to not being a member of the trading bloc. 

Comments

Andly1989

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