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European Union (EU) and Preferential

Select either the European Union (EU) or the North American Free Trade Arrangement (NAFTA), and answer the following questions based on your selection:

What is the purpose of a regional trading arrangement (RTA)?
Why would each country/region agree to one?
How has each of the countries in the EU or NAFTA (based on your selection) benefited or not benefited from the arrangement?
Make sure you answer in complete sentences providing as much detail as needed, and cite as examples to support your answers any recent activities that have occurred from the RTA in the countries/region you have selected.

Solution Preview

Note: Specified below are only suggested responses to the queries. You may expand them if needed. References/source of quoted materials are listed below.

Suggestion: Try selecting the European Union (EU)

What is the purpose of a regional trading arrangement (RTA)?

Suggested response:

The main purpose of RTA is for a country to gain preferential trade deals such as minimal quota and tariff. An RTA is only possible if a country is a member of a trade block.

Why would each country/region agree to one?

Suggested response:

Joining a trade block like EU, for example, would allow member nations to trade their own resources within themselves. Any excess production that cannot be absorbed by the member can be exported to non-EU members.
By becoming a member of the ...

Solution Summary

This is a brief discussion on EU membership. The discourse includes the purpose of a regional trading arrangement and how the member countries actual benefits.

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