Suppose the countries of Iceland and Norway set up a free trade area, eliminating all trade barriers between themselves but main

Question

3 years ago

8

Suppose the countries of Iceland and Norway set up a free trade area, eliminating all trade barriers between themselves but main

taining tariffs on imports from the rest of the world. Now, Iceland begins to import wool from Norway. However, Iceland had previously been importing wool from England, which produced wool more cheaply than both Iceland and Norway. What is this an example of

Business

1 answer:

geniusboy [140] · Answer 1 · 2022-05-08T06:57:53+03:00

Answer:

Trade Bloc

Explanation:

Trade Bloc is a type of agreement between two sovereign nations in which barriers to trade are either reduced or totally eliminated between the two nations. This type of agreement can either be one agreement between several nations or a part of a regional organization.

So, the example of Iceland and Norway is an example of a trade bloc.