With the phenomenon of globalization, the international market has become quite competitive, given that, only the strongest prevail. What happens is a dispute for markets on a global scale.
Many countries, in order to strengthen themselves economically, unite to reach markets and verticalize their participation and commercial influence in the world. The creation of economic blocs strengthened economic, financial and trade relations between the countries that make up a given economic bloc.
There are currently many economic blocks, formed decades ago.
MERCOSUR (Southern Common Market) was founded in 1991, consisting of Brazil, Paraguay, Uruguay and Argentina, South American countries seeking economic integration and strengthening of member countries.
The European Union (EU) was established in the late 50s, although it was only made official in 1992, the countries that are part are: Germany, France, United Kingdom, Ireland, Netherlands, Belgium, Denmark, Italy, Spain, Portugal, Luxembourg, Greece, Austria, Finland and Sweden, in these countries runs a single currency, the euro, with the exception of Denmark (Danish krone), Sweden (Swedish krone) and the United Kingdom (pound sterling).
Examples such as the EU and MERCOSUR occur from trade agreements established between member countries, in which case they implement measures that eliminate total or partially the customs barriers, such as the elimination of taxes, in addition to the circulation of goods, capital, services, people and other points that the bloc judges required.
What is expected with the formation of economic blocs is economic intensification and commercial flexibility among the members.
There are other commercial bodies, such as the WTO (World Trade Organization), which integrate all the countries that participate in the international trade, these institutions aim to oversee and mediate trade relations so that there are no parties favored.
The main economic blocs in the world are the European Union (EU), MERCOSUR (Southern Common Market), Apec (Asia and Pacific Economic Cooperation) and NAFTA (North American Free Treaty Business).
By Eduardo de Freitas
Graduated in Geography
Source: Brazil School - https://brasilescola.uol.com.br/geografia/formacao-blocos-economicos.htm