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 Form 4 Geography online lessons on trade

Problems facing regional trading Blocs

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Answer Text:
Problems Facing Regional Trading Blocs.
(a) Civil wars taking place in some countries which has caused insecurity in turn affecting trade between countries.
(b) Political differences among leaders of member states may affect cooperation among member states.
(c) Some countries produce similar goods making the volume of trade to be low and less rewarding.
(d) Free trade affects local industries as the imported goods without taxes are usually cheaper than locally produced goods.
(e) Free trade denies countries revenue they would have earned from taxing imported goods.
(f) Poor transport and communication limits inflow of goods and services.
(g) Some member states don’t remit their annual subscriptions which affects the operations of the organizations.