Question
Regional Economic Groupings
Answer :
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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 upon how high is the common external tariff, it is possible that exporters of certain products would find it easier to penetrate the regional market which
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