Trading Bloc
Group of countries with reduced trade barriers among themselves.
Real World
As an EU member, UK car manufacturers like Nissan in Sunderland could ship vehicles tariff-free across 27 European countries; post-Brexit, new rules of origin requirements added compliance costs and disrupted just-in-time supply chains.
Exam Focus
When evaluating trading blocs, address both trade creation (more efficient internal trade) and trade diversion (away from cheaper external producers) to show depth.
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