Question

What motivates countries to join regional trade blocs? (5 points)

1. Removing barriers to trade protects from influence of foreign markets

2. Increasing tariffs adds to the national GDP

3. Eliminating barriers to trade benefits the economies of member nations

4. Expanding trade relationships reduces cultural diffusion

Answer 1

3. Eliminating barriers to trade benefits the economies of member nations

Step-by-step explanation:

There are multiple regional trade blocks around the globe, some being larger, with more members, some with only few members. The reason for the formation of the regional trade blocks and their attractiveness is that the trade barriers between the member countries are removed. This means that the goods can move freely between them, resulting in stronger and more stable economies. Examples of such trade blocks are NAFTA (USA, Canada, and Mexico), and ASEAN (the nations of Southeast Asia).