Sunday, July 10, 2011

Economics question!!?

The European has been proved successful. The trade creation is more than trade diversion. Trade creation means intra-trade between member countries will increase,while trade diversion means trade with third countries will decrease due mainly to tariffs.The EU has also trade connection with GSP with former colonial countries.But not every trade block is successful. NAFTA has tried to increase trade creation without trade diversion.The same as APEC. ASEAN is going to be an trade and investment block in full very soon, but it is still a very loose organization. The establishment of the trade-block in North Asia has been debating for years, but it might be hard to let it happen.

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