Int.b.e

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Int.b.e

  1. 1. REGIONAL TRADE BLOCS<br />by<br />M. Tarunkumar (0228)<br />M.Sireesha (0229) N.ChaitanyaSudha (0230)<br />
  2. 2. Regional Trade Blocs<br /><ul><li> It’s a “prefrential trade agreement”(PTA) between a subset of countries designed to remove trade barriers within member countries.
  3. 3. It refers to a regional trade agreement or integration.
  4. 4. It also referred to as a natural trade bloc.</li></li></ul><li>Major Trade Blocs in the world<br />EU (European Union )<br />NAFTA (North American Free Trade Agreement)<br />MERCOSUR (Mercado Comun del Cono Sur, also known as Southern Common Markets (SCCM)<br />ASEAN (Association of Southeast Asian Nations)<br />SAARC (south Asian association for regional cooperation)<br />
  5. 5. PRINCIPLES & CHARACTERISTICS<br /><ul><li> It implies a reduction or estimation of barriers to trade.
  6. 6. Trade liberalisation is discriminated .
  7. 7. It exists as well regional integration agreements.
  8. 8. It also entail deeper forms of integration for instance of international competition.</li></li></ul><li>CAUSES OF TRADE BLOCS<br /><ul><li>The so called “old regionalism” was motivated by the desire to import development at a regional level.
  9. 9. To insulate a region from the world economy and to stablise at a regional level.
  10. 10. It played major role in political and economical considerations.
  11. 11. Not only concessions can be easily exchanges a small number of countries .
  12. 12. Trade blocs may serve to pursue non economic objectives</li></li></ul><li>TYPES OF TRADE BLOCS<br /><ul><li>Free trade areas
  13. 13. Customs unions
  14. 14. Common markets
  15. 15. Economic unions</li></li></ul><li>ADVANTAGES<br /><ul><li>Transactions costs will be eliminated.
  16. 16. Price transparency.
  17. 17. Uncertainity caused by exchange rate flactuations eliminated.
  18. 18. Single currency in single market makes sense.
  19. 19. Inflation.</li></li></ul><li>DISADVANTAGES<br /><ul><li>The instability of the system.
  20. 20. Over estimation of trade benefits .
  21. 21. Loss of soveriegnty.
  22. 22. Deflationary tendencies.</li></li></ul><li>Thank q…<br />

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