Answer :
Final answer:
Geography influences RTAs by shaping trade patterns and access to markets. Examples include ASEAN, Mercosur, and NAFTA.
Explanation:
Importance of Geography in Regional Trade Agreements
Geography plays a crucial role in Regional Trade Agreements (RTAs) as it influences trade patterns, transportation routes, and access to markets. Countries that share a geographical proximity often form RTAs to facilitate trade among themselves. For example, the European Union (EU) is a prominent RTA where geography has shaped its integration efforts due to its member countries' close proximity.
Examples of RTAs
1. Association of Southeast Asian Nations (ASEAN): Geographically close countries in Southeast Asia have formed this RTA to enhance regional economic cooperation.
2. Mercosur: South American countries like Brazil, Argentina, Paraguay, and Uruguay have a geographical proximity that led to the formation of this trade bloc.
3. North American Free Trade Agreement (NAFTA): The USA, Canada, and Mexico, geographically connected in North America, established this RTA to boost trade among them.
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