What is the significance of political alliances in international trade? 🔊
In international trade, political alliances significantly enhance economic cooperation and facilitate access to markets. Such alliances often lead to the establishment of trade agreements that lower tariffs and reduce trade barriers, promoting economic growth. The significance lies in the leverage countries gain through collaboration, as they can negotiate better terms collectively rather than individually. Furthermore, these alliances may serve diplomatic purposes, fostering regional stability and mutual support in other political arenas, thus reinforcing the interconnected nature of global economies.


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