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Problems facing regional trading blocs.

  

Date Posted: 6/25/2013 2:38:09 PM

Posted By: Brenda N  Membership Level: Silver  Total Points: 728


1.The civil wars taking place in some countries cause insecurity,which affects trade between the countries.

2.Political differences among the leaders of the member states may affect cooperation among the member states.

3.The member states are not at the same level of industrialization making some countries to rely on those that are more industrialized.

4.Some of the countries produce similar goods making the volume of trade to be low and less rewarding.

5.Free trade affects local industries,as the imported goods without taxes are usually than locally produced goods.

6.Free trade denies the importing countries the revenue they would have earned from taxing imported goods.

7.Poor transport and communication linkages between member states limit inflow of goods and services.

8.The flow of goods and services between the states still low because of poverty among majority of the people in the regions.

9.Some member countries do not remit their annual subscriptions which affects the operations of the organisations.



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