Which of the following is true of trading blocs?
A) Regional trading blocs are slowly being replaced by independent national markets.
B) The individual countries that comprise trading blocs have disappeared completely.
C) Trading blocs are created by countries that prefer not to participate in the global market.
D) The customs and norms of individual countries that comprise trading blocs still prevail.

Question

Quizplus · Accepted Answer

Trading blocs are formed by countries to promote free trade and remove trade barriers among themselves. However, the customs and norms of individual countries still prevail within the bloc. Trading blocs such as the European Union, ASEAN, and NAFTA have common policies and regulations but member countries still operate under their own laws and regulations. Choice A is incorrect because regional trading blocs are still prevalent and have not been replaced by independent national markets. Choice B is incorrect because the individual countries that comprise trading blocs still exist as independent nations. Choice C is incorrect because trading blocs are created to participate in the global market, not avoid it.

Which of the Following Is True of Trading Blocs