The emerging trading blocs in the world, such as NAFTA, ASEAN and the like, are expected to
A
act as constrictions in free trade across the world
B
promote free trade on the lines laid down by the WTO
C
permit transfer of technology between member countries
D
promote trade in agricultural commodities between countries of the North and South
Correct Answer: Option A
Explanation
1. The question asks about the expected impact of emerging trading blocs like NAFTA (North American Free Trade Agreement) and ASEAN (Association of Southeast Asian Nations).
2. Trading blocs aim to reduce or eliminate trade barriers (like tariffs) among member countries, promoting trade within the bloc.
3. However, they often maintain or even raise barriers against non-member countries. This can lead to trade diversion (shifting trade from more efficient non-members to less efficient members) and potentially create obstacles to global free trade.
4. While they promote internal trade, their effect on overall global free trade (as envisioned by the WTO) can be complex and potentially restrictive.
5. Therefore, a significant concern is that these blocs might act as constrictions in free trade across the world, creating preferential zones rather than contributing to universal liberalization. Option A reflects this potential outcome.
6. Options B, C, and D are less certain or less direct consequences compared to the potential impact on global free trade patterns.