This document defines and provides examples of trade blocs, which are sets of countries that engage in international trade through agreements like free trade areas or customs unions. It discusses the levels of economic integration in trade blocs and provides examples like the EU, NAFTA, SAARC, and BRICS. The EU is the largest trading bloc and aims to eliminate trade barriers. NAFTA links the US, Canada, and Mexico in a free trade zone. SAARC promotes economic cooperation among South Asian nations. BRICS is an association of emerging economies that represents over 40% of the world's population and launched the New Development Bank in 2014.

1. TRADE BLOCS

2. A set of countries which engage in
international trade together, and are
usually related through a free trade
agreement or other associations.

3. • Preferential trade area
• Free trade area
• Customs union
• Common market

4. • Economic integration
• Free transfer of resources
• Increase in trade
• Employment opportunities
• Benefit to the consumer
• Co-operative spirit
• Competition
• Development of region

5. • Free trade within the bloc
• Market access and trade creations
• Economic of scale
• Jobs
• protection
• Loss of benefits
• Distortion of trade
• Inefficiencies and trade
diversion
• retaliation

6. • EU
• NAFTA
• SAARC
• BRICS

7.  The EU is the world’s largest trading bloc, and second largest
economy, after the USA.
 The original six members were Germany, France, Italy,
Belgium, Netherlands, and Luxembourg.
 The initial aim was to create a single market for goods,
services, capital, and labour by eliminating barriers to trade
and promoting free trade between members.
 By 2014, following continuous enlargement, the EU had 28
members. Latvia is the latest country to join in European
union

8.  The United States has linked with Canada and Mexico to form
a free trade zone, the North American Free Trade Agreement
(NAFTA).
 The NAFTA agreement covers environmental and labour
issues as well as trade and investment, but US unions and
environmental groups argue that the safeguards are too
weak.
 In terms of combined purchasing power parity GDP of its
members, as of 2007 the trade bloc is the largest in the
world and second largest by nominal GDP comparison
 Main members of NAFTA: Canada; Mexico; United States

9.  The south Asian Association for Regional Corporation
(SAARC) it has 7 members namely India, Bangladesh,
Pakistan, Nepal, Bhutan, Sri Lanka and Maldives. It formally
launched in December 1985
 The fundamental goal of SAARC is to accelerate economic and
social development through optimum utilization of their
human and material resources.
 It help to accelerate economic growth ,social progress and
cultural development in the region
 It help to promote and strengthen collective self reliance
among the countries of south Asia. And to contribute to
mutual trust, understanding and appreciation of each other’s
problems

10.  BRICS is the acronym for an association of five major emerging
national economies: Brazil, Russia, India, China, and South Africa.
 The BRICS members are all developing or newly industrialized
countries, but they are distinguished by their large, fast-growing
economies and significant influence on regional and global affairs.
 As of 2014, the five BRICS countries represent almost 3 billion
people which is 40% of the world population, with a combined
nominal GDP of US$16.039 trillion (20% world GDP) and an
estimated US$4 trillion in combined foreign reserves. As of 2014,
the BRICS nations represented 18 percent of the world economy.
 BRICS bank launched in 15 July 2014 .Now it named as New
Development Bank (NDB), as an alternative to the existing US-dominated
world bank and International monetary fund Bank is set
up to foster greater financial and development cooperation among
the five emerging markets.