Influence of International Organisations and Contemporary Trading Blocs and Agreements in Promoting Globalisation

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Economics Essay
Discuss the influence of international organisations and contemporary trading blocs and agreements in promoting globalisation.|

Throughout the recent decades, international organisations, trading blocs and agreements such as the European Union (EU), Asia-Pacific Economic Corporation (APEC), North American Free Trade Agreement (NAFTA) and Association of South-East Asian Nations (ASEAN) have influenced the promotion of globalisation throughout economies. The positive and negative outcomes of the influence of international organisations, contemporary trading blocs and agreements in promoting globalisation are outlined. Trading bloc occurs when a number of countries join together in a formal preferential trading agreement to the exclusion of other countries, such as the EU and NAFTA. As global trade has grown and as more economies form trading blocs – countries in recent years have moved to form agreements and trading alliances to ensure that they are in the best position to gain from growing trade opportunities and also to avoid being excluded from the emerging trading blocs. The promotion of the advantages of joining emerging trading blocs would place countries excluded from trading blocs and agreements at a disadvantage. Trade agreements can be bilateral (involving two countries – like Closer Economic Relations Trade Agreement, CERTA between Australia and New Zealand) or multilateral/regional (occurring on a regional basis – like NAFTA), or global (World Trade Organisation). Trade Agreements promote free trade exclusively amongst members or can be open to all nations. Free trade agreements are formal agreements between countries designed to break down barriers to trade between those nations. While these agreements are generally described as free trade agreements, in context it is more accurate to call them preferential trade agreements because in effect, they give more favourable access to goods and services from one nation or a group of...
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