Trading blocs are association of certain nations, which agrees to reduce or eliminate the barrier of trade among them so as to promote trade among them. Some of the most prominent trading blocs are
· European union
· European free trade association
Objectives of trade blocs
· Reduce and if possible to eliminate the trade barriers among nations who are members of such groups
· To improve political ties among the nations of the group
· To increase the mobility of factors of production ie labour, capital and other factors among the member nations.
· To impose the growth of region through harmonization of trade policies within the member nations
· To improve the bargaining power of the member nations, as they have collective powers of the group.
· To assist the member nations in best possible ways.