Question

Formation of regional economic grouping does not lead trade diversion.

Answer 1

Answer:

Below is the answer.

Explanation:

Regional groups are local groups of people based on their likes and dislikes. things that are common between them. Regional Economic Groups are those that are based on similar financials and ways of earning.

These regional economic grouping based on the sameness between people do not lead to diversions in trade as same items are bring traded between a group or outside a group an identical item exists hence imports are important to bring diversity in the market. Either these are from different states or different countries.

Answer 2

Explanation:

Since its inception in "1997", the "Indian Ocean Rim Association" (IOR-ARC) has witnessed extensive changes in terms of "trade", "investment", "diplomatic engagement", "mutual public relations" and "cultural exchange".

Keeping this in mind, it was considered mandatory to carry out this study along with continuing the current research program of RIS on Indian Ocean Rim Association (IOR-ARC) for regional cooperation. The study introduced 10-point recommendations to promote economic integration including ensuring ease of trade, harmonizing regulations, global value chains, sector-wise cooperation, etc.

These were later referred to the Trade and Investment Committee of IOR-ARC, so that the possibilities of their implementation could be properly examined. Formation of regional economic grouping doesn’t lead trade diversion.