Question
Rationale of Regional Economic Groupings
Answer :
Word Count : 290
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regional economic groupings are institutional factors which an international marketer must take into account. There are several ways in which these groupings can influence his marketing operations:
1. If the formation of the grouping results in substantial trade creation, the resultant increase in income and investment can lead to an increase in the imports of the grouping as a whole.
2. On the other hand, if trade diversion is the dominating effect, the export prospect to the group members would be adversely affected.
3. Depending
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