Trade Bloc of the World

different trade blocs of the world

DESCRIPTION

OF

TRADE BLOCK

Submitted to: Asst. Professor Mr. Kislay Kashyap

Submitted by: Sudipta Chanda Burman

SUB: Global Marketing

MFM:III Roll no:25

TRADING

Trade is the transfer of ownership of goods and services from one person or entity to another by getting something in exchange from the buyer. Trade is sometimes loosely called commerce or financial transaction or barter. A network that allows trade is called a market. The original form of trade was barter, the direct exchange of goods and services. Trade exists between regions because different regions have a comparative advantage in the production of some tradable commodity, or because different regions' size allows for the benefits of mass production.

The World Trade Organization (WTO)

The only global international organization dealing with the rules of trade between nations. WTO agreements are negotiated and signed by the bulk of the world’s trading nations and ratified in their parliaments. The goal is to help producers of goods and services, exporters, and importers conduct their business.

It is the international organization whose primary purpose is to open trade for the benefit of all.

TRADING BLOCKS

Trading blocs are group of countries that have associated to promote and manage trade activities. These are formed to encourage trade of goods and services among members.

A trade bloc is a type of intergovernmental agreement, often part of a regional intergovernmental organization, where regional barriers to trade, (tariffs andnon-tariff barriers) are reduced or eliminated among the participating states.Every trade blocs have social and political implications.

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The two principal characteristics of a trade bloc are that:

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(1) It implies a reduction or elimination of barriers to trade,

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(2)...