WHAT IS A REGIONAL TRADE BLOC?

A regional trade bloc is a group of countries that agrees to buy each others products without imposing tariffs.

To understand what a regional trade bloc is, you can follow these steps:

1. Start by searching for the definition of a trade bloc. The term refers to a group of countries that join together to foster trade and economic cooperation.

2. Look for examples of regional trade blocs to get a better understanding. Prominent examples include the European Union, the North American Free Trade Agreement (NAFTA, now replaced by the United States-Mexico-Canada Agreement - USMCA), the Association of Southeast Asian Nations (ASEAN), and Mercosur in South America.

3. Once you have a general understanding of what a trade bloc is, narrow your search to specifically focus on regional trade blocs. Regional trade blocs are a type of trade bloc that is formed by neighboring countries within a specific geographic region.

4. Pay attention to the key characteristic of a regional trade bloc: the elimination or reduction of tariffs on goods traded between member countries. Member countries agree to remove trade barriers, such as import quotas or customs duties, to facilitate trade within the bloc.

By following these steps, you can gain a clear understanding of what a regional trade bloc is and how it differentiates from a trade bloc in general.