Question
The Regional Economic Groupings do not lead to increase in market size.
Answer :
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One of the apparent implications of regional economic groupings is increase in market size. Instead of a third country exporter dealing separately with each country with limited population or limited number of countries, he can deal with the entire grouping that is many times bigger than the country/countries he was earlier dealing with. This has two implications. One is that the size of the export order is likely to be considerably large with the attendant benefits of increased sales and scale of economies.
Secondly, if he is able to enter one
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