Trading blocs and their influence on the globalisation of the Essay

Trading blocs and their influence on the globalisation of the marketing strategies - Essay Example The global stage is dominated by the presence of a large number of trading blocs for a number of countries and regions. There are about 30 trading blocs globally across various continents, working either at national or regional levels. In Europe alone, there are three trading blocs, namely European Union, European Free Trade Association and Eurasian Economic Community. However, trade bloc of the European Union is the only one to have the United Kingdom as its member (Floyd, 2001). The world trade is being increasingly dominated by the concept of trade blocs in recent times. This can be clearly exemplified by taking the case of the European Union. Initially, this had only six countries as its members during inception in 1940s, but had 28 countries by end of the first decade of 21st century. NAFTA is another such trade bloc, which promotes trade relations between the USA and Canada (Oh and Suh, 2003). All major trade blocs that exist in the contemporary world, like, ASEAN, NAFTA and Eu ropean Union, have a common objective. The countries that are outside the trading blocs do not enjoy benefits of lower tariff and custom duties on imported goods . Trade blocs have a very important role to play in economic development of a country, primarily because economic progress of a country can be directly related to amount of trade conducted by that country. This is because trade brings new opportunities to a country by opening up its markets, bringing in improved technological innovation and raising the level of production.