Understanding Trading Blocks and International Trade

What is a trading block?

• A group of countries that trade freely with each other and impose restrictions on outsiders.

• A type of currency used in international trade.

• A single country that trades with multiple other countries.

• A global organization that regulates international trade.

Which of the following is NOT an example of a trading block?

• NAFTA

• EU

• WTO

• APEC

What is one major disadvantage of being outside a trading block?

• Easier negotiation of trade deals.

• Increased political influence.

• Higher tariffs on goods and services.

• Access to free trade agreements.

How do trading blocks benefit companies with an international presence?

• By allowing free movement of goods only.

• By reducing the need for trade agreements.

• By facilitating the free movement of people.

• By eliminating all visa requirements.

What is a potential impact of trading blocks on global trade?

• They ensure equal benefits for all countries.

• They can either strengthen or hinder global trade.

• They always improve global trade relations.

• They eliminate the need for the WTO.