ZIMSEC O Level Commerce Notes:Trading Blocs
- A trading bloc is a group of countries that has removed/reduced trade restrictions between and among member states in order to facilitate trade.
- Examples of trade blocs are SADC, COMESA, ECOWAS, ACP countries, the Commonwealth of Nations and the African Union (AU).
Reasons for forming trading blocs.
- To reduce reliance on countries outside the bloc and thus encourage the bloc members to be independent.
- To promote trade among member states y reducing tariffs.
- To foster peace and friendship among member states.
- To assist each other economically in times of problems.
- To bargain powerfully as a group when negotiating for financial assistance or debt cancellation.
- To mobilise resources together and share ideas or technology as a group.
To access more topics go to the Commerce Notes page.