What are some examples of economic coalitions?

What are some examples of economic coalitions?

Economic coalitions are groups of countries or organizations that collaborate for mutual economic benefit. Examples include the European Union (EU), North American Free Trade Agreement (NAFTA), and the Association of Southeast Asian Nations (ASEAN).

Can you explain the purpose of the European Union?

The European Union aims to promote economic cooperation, ensure free movement of goods and people, and maintain peace among its member states.

What impact do these coalitions have on global trade?

Economic coalitions can significantly enhance trade by reducing tariffs, standardizing regulations, and fostering stronger economic ties between member countries.

Are there any downsides to being part of an economic coalition?

Yes, downsides can include loss of sovereignty, dependency on other member states, and potential economic disparities among members.

How do countries decide to join an economic coalition?

Countries typically consider factors like economic benefits, political stability, and strategic alliances when deciding to join an economic coalition.