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submit a 2000 words paper on the topic Trading Blocs and Their Effects on the Globalization of the Marketing Strategies

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submit a 2000 words paper on the topic Trading Blocs and Their Effects on the Globalization of the Marketing Strategies. Trading blocs across economies have also played gigantic roles in generating commercial cross-country trade (Pearce and Tavares, 2000).

A trading bloc is a type of intergovernmental formal agreement that helps to lower the regional barriers to trade. A trading bloc in a nation that can exist in the form of a section of regional intergovernmental association and it promotes international trade between states. It is currently seen that the degree of competition across each industrial segment is high and in order to gain higher competency, marketing activities have become an indispensable business task for every organization. This article will precisely elaborate on the impact created by trading blocs on the globalization of marketing strategies of the firms. It is highly rational to conduct an analysis on the concerned topic because corporate firms undertake internationally integrated marketing activities, after extending business internationalization process as per the resource-based view of management (Pettinger, 2008).

Trading blocs were formed after the implementation of the Free Trade Agreement (FTA) in each nation (Delener, 1999). In 1988, Canada had signed the FTA with the United States. In 1994, the North American FTA included Mexico in the free trading group, along with the U.S. and Canada (USI, 2000). Over time, countries lying in specific political unions such as ASEAN and APEC started to adopt the free trading agreement, following enactment of the NAFTA. Few researchers claim that trading agreement between nations substantially depends on the level of coordination among participating nations (USI, 2000). Thus trading blocs primarily reduce barriers to international trade between nations. Furthermore, foreign direct investments, economies of scale, increased market competition and enhanced market efficiency can be experienced in an economy, only with the help of trading blocs.