Question

What motivates countries to join regional trade blocs?

Answer 1

Answer:

Eliminating barriers to trade benefits the economies of member nations

Explanation:

In today’s world, it is very difficult for a country to be totally isolated and survive in the global market. The competition is very strong and because of that, regional trade blocs were created.

Regional trade blocs are economic alignments that unite countries within a shared region, such as Mercosul, Europe Union, NAFTA, and others.

Regional Trade Blocs aim to reduce or eliminate trade barriers between those countries, this way products from those countries are sold cheaper than others.

Answer 2

1) - removing barriers to trade does not protect from foreign influence - false.
2) regional trade blocks are usually correlated with decreasing, not increasing tariffs - false.
3) this it true - and this is the reason - correct answer
4) it increased, not reduces diffusion- not the correct answer