Asked by Latoya Alexander on May 06, 2024
Verified
Marketers contemplating operations and trade with a specific country must consider whether the country belongs to a trading bloc. A trading bloc is a group of countries that have
A) established a formal agreement to manage trade activities.
B) agreed to use the same currency.
C) similar consumer purchasing patterns.
D) been segmented according to their geographic proximity.
E) been segmented based on shared cultural values.
Trading Bloc
Consists of those countries that have signed a particular trade agreement.
Trade Activities
Various operations and transactions involved in the buying, selling, or exchange of goods and services between businesses, countries, or entities.
Formal Agreement
A legally binding contract or document specifying the terms and conditions of an arrangement between parties.
- Master the understanding of how tariffs and trade agreements shape international marketing.
Verified Answer
SS
Sruthy SabesanMay 12, 2024
Final Answer :
A
Explanation :
A trading bloc is a formal agreement among a group of countries to manage trade activities, such as lowering trade barriers and promoting the free movement of goods and services. Examples of trading blocs include NAFTA, the European Union, and the Mercosur. Choice B is incorrect because agreement to use the same currency is a characteristic of monetary unions, not trading blocs. Choices C, D, and E are also incorrect because they do not accurately describe the purpose or structure of a trading bloc.
Learning Objectives
- Master the understanding of how tariffs and trade agreements shape international marketing.