Trade Blocs
A trade bloc is a group of countries that come together to promote trade and economic cooperation among themselves. By reducing or eliminating tariffs and other trade barriers, these countries aim to enhance their economic growth and competitiveness. Examples of trade blocs include the European Union and the North American Free Trade Agreement (NAFTA).
Trade blocs can take various forms, such as free trade areas, customs unions, or common markets. Each type has different levels of economic integration, with free trade areas allowing member countries to maintain their own trade policies while customs unions adopt a common external tariff.