Global Trading Blocs

Business is one of the factors that affect the economic, political and social competition of the country. Each country usually wishes to reach an agreement with the countries that they believe can be symbiotic in trade (Chang & Winters 2002, p. 899). However, trade among countries can also be formed in the region; this is where the trade group enters. The trade group is attributable to the two main features of trade barriers reduction or elimination and effective inequality, since liberalization among member countries does not extend to countries outside the trade group.

Since the degree of globalization has developed uniformly, the problem raised is whether international trade is focused on regional integration rather than global integration. Trade organizations such as North American Free Trade Agreement (NAFTA), European Union (EU), Asia-Pacific Economic Cooperation (APEC), South Common Market (South American Trade Group), Association of Southeast Asian Nations (ASEAN), East African Community (EAC) We support geographically neighboring countries. Regional cooperation

When examining the definitions, principles and objectives of globalization and trade groups, they complement each other, resulting in an increase in interdependence and trade; Wang (2010). Therefore it is easy to think that globalization is an economic alliance formed purely by trade groups. However, the trade group establishes trade barriers to other people in the world to promote regionalization rather than the worldwide exclusion of trade barriers, to invite and confront opposing parties seeking regional interests Therefore, it can be regarded as an obstacle to globalization. Import of goods from other countries, Wang (2010) This contradicts the globalization of the world and the interconnection of all countries, and "free trade" among all countries; Wang (2010). For example, the CAP of the European Union imposes high tariffs on imported foods and discards surplus foods to the world market. Pettinger (2008)

The subject of the discussion is whether or not the trade group will support or impede trade liberalization - the priority trade agreement among the countries within a particular block divides the global market into different sectors, so that the way to global free trade It may interfere with. However, economists agree that the trade barriers can act as a foothold for the release of the world market, in order to eliminate protective barriers and encourage countries to develop free trade.

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Globalization - "Survey of global, regional and bilateral trade agreements on global economy"

In addition to the integration of countries belonging to the trade group, globalization is further supported by the trade group, which shows that it is easy to negotiate on a global scale. One case related to trade negotiations is that the EU as a single group is in the process of negotiating and making it easier and faster to promote the practice of expanding free trade. When Pettinger (2008) reviews globalization and trade group definitions, principles and objectives, they complement each other, resulting in an increase in interdependence and trade; Wang (2010). Therefore it is easy to think that globalization is an economic alliance formed purely by trade groups.