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A set of countries which engage in international trade together and are usually related through a free trade agreement or other association.
Trading bloc definition. Depending on the level of economic integration trade blocs can be classified as preferential trading areas free trade areas customs unions common markets or economic and monetary unions. Trading blocs lead to trade liberalisation the freeing of trade from protectionist measures and trade creation between members since they are treated favourably in comparison to non members. Definition an agreement between states regions or countries to reduce barriers to trade between the participating regions.
The world trade organisation wto permits the existence of trading blocs provided that they result in lower protection against outside countries than existed before the creation of the trading. Definition of trading bloc. Trade blocs can be stand alone agreements between several states or part of a regional organization.
Trading blocs are usually groups of countries in specific regions that manage and promote trade activities. Some opponents of trade blocs believe that such agreements are detrimental to global free trade. A trade bloc is a type of intergovernmental agreement often part of a regional intergovernmental organization where barriers to trade are reduced or eliminated among the participating states.
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