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In this assignment, I will be looking into trading blocs in further detail; looking into the different examples of international trading blocs and how they benefit international business.
Trading blocs are generally when a number of countries unite together (usually from specific regions) to manage and promote trade activities. Trading blocs make the barriers of access much more accessible by reducing the barriers of trade or evens eliminating it in the specific countries. This has many main advantages as there is easier access to the market meaning trade relationships are likely to increase. Free trade will have many knock on effects for the consumer as producer intermediaries are reduced therefore lower cost and lower prices for the consumer.
World Trade Organisation
The world trade organisation is an example of a trading bloc, they are the only international organisation dealing with the global rules of trade between nations. Its main function is to ensure that trade flows as smoothly, predictable and freely as possible. For example they have implemented factors such as low trade barriers through negotiation and strictly operates under a non-discrimination basis.
Custom Union
A customs union involves the removal of trade tariff barriers between members, plus the acceptance of a common (unified) external trade tariff against non-members. This means that members may negotiate as a single bloc with 3rd parties, such as with other trading blocs, or with the WTO.

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