Which is the largest trading block in the World ?
- NAFTA
- ASEAN
- EU
- MERCOSUR
Answer: EU
Explanation: A trade bloc is a type of intergovernmental agreement, often part of a regional intergovernmental organization, where barriers to trade (tariffs and others) are reduced or eliminated among the participating states.
Trade blocs can be stand – alone agreements between several states (such as the North American Free Trade Agreement) or part of a regional organization (such as the European Union). Depending on the level of economic integration, trade blocs can be classified as preferential trading areas, free – trade areas, customs unions, common markets, or economic and monetary unions.