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Equine Kingdom Riding Academy
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Various Trading Blocs and Countries |
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A trading bloc is a preferential economic arrangement among a group of countries.
There are several different forms a trading bloc may take on, including, but not limited to, the
Customs Union, Economic Union, and the Free Trade Area. The different levels of economic integration
are what sets these separate unions apart from each other. The free trade area is the least restrictive of the unions among countries. Two well-known examples are the NAFTA (North American Free Trade Agreement) and EFTA (European Free Trade Area. In these trade agreements, all trade barriers are removed and goods and services can be freely traded among the member countries. No barriers are allowed whatsoever: no taxes, quotas, tariffs, etc. Some of the countries that are included in the Free Trade Area agreements are Canada, the United States, Mexico, Myanmar, Philippines, Thailand, Laos, Cambodia, Vietnam, Indonesia, Malaysia, Singapore, Chile, Bolivia, and Brunei. One step farther along the process of economic integration is the Customs Union. This involves collaboration among trading companies where members dismantle trade barriers in order to trade goods and services, and also establish a common trade policy with nonmembers. Their member countries include Botswana, Lesotho, Namibia, South Africa, and Swaziland. The Common Market is next in line along the spectrum. The common market, as well, has no barriers to trade among members, and has a common external trade policy; they also are able to move the factors of production among members. The members of a common market must be able to cooperate closely with each other in monetary, fiscal, and employment policies. The individual countries do not always benefit, although the common market will definitely enhance the productivity of the members. Some of the members of the Common Market include Egypt, Sudan, Ethiopia, Kenya, Somalia, Eritrea, Madagascar, Venezuela, Peru, Colombia, Ecuador, Bolivia, Guatemala, El Salvador, Honduras, Costa Rica, Panama, Guyana, Suriname, Jamaica, French Guinea, Bahamas, Barbados, Brazil, Argentina, and many, many more. Last in line is the Economic Union. This requires the integration of economic policies in addition to the free movement of goods, services, and factors of production across borders. Under this type of union, members harmonize monetary polices, taxation, and government spending, and a common currency would be used by all members. This can be accomplished by a system of fixed exchange rates. This system requires nations to surrender a large measure of their national sovereignty to authorities of community-wide institutions. Despite the disadvantages of this type of union, however, there are currently fifteen countries that are part of the European Union, which is an economic union. They are as follows: Austria, Belgium, Denmark, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg, the Netherlands, Portugal, Spain, Sweden, and the UK. The economic union states in Africa include Nigeria, Mali, Sierra Leone, and Mauritania. These are the different types of unions and trading blocs that a country can belong to. While they seem to vary only slightly, an in-depth look at any and all of the comparisons show that they are, in fact, quite different. Each is unique in its own way and conforms to the countries' needs. |