Trade Blocs

Trade blocs are types of intergovernmental agreements where regional barriers to trade are reduced or eliminated among the participating states. There are advantages and disadvantages to trade blocs.

Advantages:

1. Faster way to remove trade and investment barriers within trade blocs.
2. Increasing inter-dependency of neighbouring countries on one another. 
4. Wider range of goods available for consumers.
5. Makes movement of money and goods easier.

Disadvantages:

1. It could create over-dependency amongst member states.

2. Large investments into back-up funds.

3. Loss of benefits for non-members.

4. in-equal distribution of resources.

5. Less global free trade.

6. Financial costs to governments in short term.