Question

What motivates countries to join regional trade blocs?

A.) removing barriers to trade protects from influence of foreign markets.
B.) increasing tariffs adds to the national GDP.
C.) eliminating barriers to trade benefits the economies of member nations.
D.) expanding trade relationships reduces cultural diffusion.

Answer 1

C.) eliminating barriers to trade benefits the economies of member nations.

A trade bloc is an intergovernmental organization where tariff barriers are eliminated among the member nations.

Answer 2

The correct answer is - C.) eliminating barriers to trade benefits the economies of member nations.

The regional trade blocs, in fact all trade blocks, are very useful for the economies of the countries that are members in the trade block. The benefit can be seen in the economic sector, as the countries can both, export products on larger markets without tariffs, and import products without imposing tariffs, which benefits the consumers as the prices are lower in that way.

The trade blocks have become a common thing in the world during the 20th century, and that has helped the economies of lot of countries, as well as the choices available and buying power of the consumers.