Trading blocs are the most significant factor contributing to globalisation. To what extend do you agree to this view?
Trading blocs can be defined as a group of countries which engage in international trade together, and are usually related through a free trade agreement or other association and coordinate their foreign trade policies. Globalisation refers to the phenomena of increased integration and interdependence of the national economies. It also refers to how the economic barriers between countries are disappearing and thus enabling more trade and free movement of labour and capital. Trading blocs are majoraly involved in contributing to globalization. With trade agreements, there are reduced taxes amd reduced borders that make it more convinient for the movement of people. This helps to further integrate economies, and therefore contributing to globalization. Trading blocs like the EU accelerate globalisation. The EU has expanded to over 26 countries and that gave up their sovereignty. Within the EU, there has been a marked integration of the national economies. Trade amongst members has increased. There has also been greater movement of capital and labour. An example will be the immigration from Poland of many workers to UK. Within the EU, there has also been a single currency and single monetary policy adopted by 11 members, making it easier to relate economically. Trading blocs play a major role in globalisation but it is not necessarily the main contributing factor. Globalisation is the system that aims to develop the global economy through the integration among countries of the world. It involves technological, economic, political, and cultural exchanges majorly due to the advances in communication, transportation, and infrastructure. There are multiple factors that contribute to globalisation as it is a very complex process. They are mainly the loosening of controls of the movements of international capital, reduction of trade barriers and...
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