TRADING BLOCS TODAY: A COMPARISM OF THE EUROPEAN UNION (EU) AND THE ECONOMIC COMMUNITIES OF THE WEST AFRICAN STATES(ECOWAS). This research title has been structured this way because it is going to focus on the history and the growth of trading blocs today and its relationship to international business. The fact that the EU and ECOWAS are the blocs that are going to be the basis for comparison, this does not mean that issue affecting on other trade blocs around the world will not be raised. The title will be structured this way because, it is precise and to the point, and also easy to understand not just to business students, but also to anyone who is aware of, or is involved, interested or affected by trading blocs today. INTRODUCTION.
What Is a Trading Bloc?
Lots of definition have been giving on the subject, but it has been difficult for an agreement to be reached as to how a Trading Bloc should be defined. According to Sanoussi Bilal he defined it as follows;
“A Trade Bloc can be defined as a ‘preferential trade agreement’ (PTA) between a subset of countries, designed to significantly reduce or remove trade barriers within member countries”. Over the years, countries throughout the world have formed many regional trading blocs, and there is no doubt that they play an important role in the world economy and trade. Since trading blocs came into being, there has been much discussion on their effects on globalization, which is the other important trend in the world economy development apart from regionalization. There are over 150 regional trade agreements currently in force, with most countries in the world participating in at least one of them. Policymakers often regard this trade initiatives as a positive effect of a more globalised world. Within the economists profession, however, this remains significant disagreement about the consequences of regionalism. The use of collaborative agreements has become an important phenomenon in international business. During the past 25 years, cooperative agreements have grown from the point of almost zero to the point where new ventures are announced on a nearly daily basis. Academic research is just starting to come to grips with this significant change in international commerce. The last decade has seen a proliferation of regional preferential trading arrangements, of which the North American Free Trade Agreement is only the best known in the United States, and the European Union In Europe. This development represents a major deviation from the global trading arrangements based on the General Agreement on Tariffs and Trade (now World Trade Organization) built up over the past half-century. Do these arrangements contribute to or detract from global trade liberalization, and from global economic welfare? In tackling these complex questions, this research proposal aims on concentrating on trading blocs and how they have effected developments in their different blocs in the regions around the world. The EU (European Union), and ECOWAS (Economic Community Of West African States), this two Blocs have been chosen as an area for comparative analysis because, the EU represents one of the most successful Trading Bloc, in the developed world, and ECOWAS represents an up-coming Bloc in international trade.
Reason for choosing this topic.
The assessment of interactions between trade and the environment is dominated by intensive ideological and scientific controversies. These controversies also influence the development of international rules for trade within these countries in the Bloc. The majority of Trading Blocs to date are between similar countries, rather than between developed and developing countries. This research aims at pursuing the issues that have cause the massive increase in the formation of trade blocs in their different regions and how it helps effect development issues in their regions. The main aim of the research paper will be to make a comparative...