Trading blocs are groups of countries:
A) in the same continent that share the same political goals.
B) that have reduced or eliminated tariffs allowing for the free flow of goods among the member nations.
C) using a common currency in order to borrow from member nations and encourage trade among the member nations.
D) prohibiting trade with the nonmember nations.

Question

Trading blocs are groups of countries:
A) in the same continent that share the same political goals.
B) that have reduced or eliminated tariffs allowing for the free flow of goods among the member nations.
C) using a common currency in order to borrow from member nations and encourage trade among the member nations.
D) prohibiting trade with the non­member nations.

Quizplus · Accepted Answer

Trading blocs are groups of countries that have reduced or eliminated tariffs allowing for the free flow of goods among the member nations. While some trading blocs may have political goals in common, this is not a defining characteristic of a trading bloc. Using a common currency and prohibiting trade with non-member nations might be features of some trading blocs, but they are not necessary components of all trading blocs.

Trading Blocs Are Groups of Countries