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What does Trading Blocs, Common Markets and Economic Unions mean?

幫考網(wǎng)校2020-10-26 11:46:56
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Trading blocs, common markets, and economic unions are all forms of regional economic integration.

Trading blocs refer to a group of countries that have agreed to reduce or eliminate trade barriers such as tariffs and quotas between themselves. Examples of trading blocs include the North American Free Trade Agreement (NAFTA) and the Association of Southeast Asian Nations (ASEAN).

Common markets are a type of trading bloc that not only eliminates trade barriers but also allows for the free movement of goods, services, capital, and labor between member countries. The European Union (EU) is an example of a common market.

Economic unions go a step further than common markets by also coordinating economic policies such as monetary and fiscal policies. The members of an economic union share a common currency and have a common central bank. The most well-known example of an economic union is the eurozone, which consists of 19 European Union countries that use the euro as their common currency.
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