Trading block and its objective
Trading block is defined as the group of countries which have come together and got involved in international trade. These countries are related over a free trade agreement. Trading blocks are one of the most organized systems and are formed with a common interest of promotion of financial and communal interests of the participating countries (Artis & Nixson, 2007). There are different types of trading block like Free Trade Area, Customs union, Economic Union, political union etc.
The objective of a trade block is to make sure that there are no trade restrictions amongst the participating members. Second objective is the betterment of social, governmental, commercial and traditional relationship within the member countries. Next objective is to promote free transmission of resources. The fourth objective is to initiate collective bargaining. Last, but not the least, objective is to encourage economic growth.
For this assignment the chosen trading block is European Union. It is one of the most dominant trading blocks. It came into existence on January 1st 1958 by pact of Rome. The originator members of this trading block are France, Western Germany, Italy, Belgium, Netherland and Luxemburg. The currency for this trading block is “EURO” and at present there are 27 members (Artis & Nixson, 2007). It includes countries like Austria, Belgium, Bulgaria, Cyprus, the Czech Republic, Denmark, Estonia, Finland, France, Germany, Greeceetc. The country chosen for the discussion below is Italy.