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Global Ecomony

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Are regional trade associations beneficial for the global economy? For members of the association? For non-members?

What are the challenges for indigenization of market concepts

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Global Ecomony is discussed very comprehensively in this explanation..

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Are regional trade associations beneficial for the global economy?
No, these trade associations erect barriers for trade with non-members. Further, regional trade associations impede the global flow of goods and services. If these regions are rich in some resource, these associations assume monopoly powers. Moreover, regional trade associations lead to environmental depredation of certain areas. For instance, since NAFTA was signed the degradation of Mexico's environment has increased. Overall for global economy, free trade is beneficial, however, regional trade ...

Solution provided by:
Hatim Baxamusa, MBA
Education
  • BSc , University of Calcutta
  • MBA, Eastern Institute for Integrated Learning in Management
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