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Trading Blocs
Trading blocs are groups of countries that have come together to reduce or eliminate trade barriers between them and increase economic integration. Here are a few examples of trading blocs:
- European Union (EU): The EU is a political and economic union of 27 member states in Europe. It has a common market, a common currency (the Euro), and a common trade policy.
- Association of Southeast Asian Nations (ASEAN): ASEAN is a regional organization of ten Southeast Asian nations. It has a free trade agreement called the ASEAN Economic Community, which aims to create a single market and production base in the region.
In Africa, one example is the East African Community (EAC), which is a regional trade bloc that includes Burundi, Kenya, Rwanda, South Sudan, Tanzania, and Uganda. The EAC aims to create a common market, a common currency, and a common external tariff among its member states. Another example is the Southern African Development Community (SADC), which is a regional organization of 15 Southern African countries. The SADC has a free trade area and is working towards the establishment of a customs union. Finally, there's also the African Continental Free Trade Area (AfCFTA), which is a continental trade agreement that aims to create a single market for goods and services in Africa.
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Global Trade: Some Key Introductory Concepts
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