Contents

• Introduction 2
• Economic Blocs and Trade Agreements – Advantages and Disadvantages 2
• Economic Bloc involving Indonesia 8
• Conclusion 11
• References 13

Description

The world economies in the recent decades have been integrating with one another like never before in the past. The benefits of economic integration are that goods, services and industrial produce are made to freely move between nations enabling heighted trade activity and hence increased trade volume (Gumilang et al., 2011). The surplus in a nation can easily be diverted to another nation if the governmental and other regulations are minimal and if there exists increased economic cooperation between nations (Shepherd & Wilson, 2009). There are many trade blocs in the world, which include nations that are integrated economically in order to boost the trade among the members of the region. The main objective of economic trade agreements is to increase trade between the nations so that all the economies of the trade block are benefited (Baldwin & Jaimovich, 2012). Since the world is converging in the recent decades in terms of connectivity and with the help of technology, trade agreements between the nations have been increasingly reducing the trade barriers between the nations. With the help of trade agreements shortage of a certain product or service in a nation can easily be met by another nation that has the surplus or the required expertise and resources to fill in the deficit in that nation. The report explores some of the trade agreements made among the MINT nations and that of Mexico with other nations in particular. The report also tries to understand as to how the industries in Mexico have been affected due to the trade agreements.