I (Meaning and importance of Exports) Unit Structure

4. Economic growth 
The formation of a trading bloc can increase economic 
growth of the region. Due to reduction of trade barriers, firms in the 
region would be in a position to produce goods at a lower price. 
This would increase demand, which in turn would lead to large 
scale production. The increase in production of goods and services 
may lead to economic growth in the region. 
5. Employment 
Due to large scale production and distribution of goods, the 
employment also increases. There can be direct and indirect effect 
on employment. The direct effect in the industries producing goods 
and services. The indirect effect is due to the increase in 

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employment in the supporting industries such as ancillary units, 
banking, insurance etc. 
6. Technological development 
Due to economic integration, there can be improvements in 
technology. As the firms grow, they would go for higher 
technological developments. A part of the increased profits can be 
utilized for research and development for the purpose of improving 
technology that will help to reduce prices, and improve quality. 
7. Investment 
There can be higher investment. The member nations may 
reduce or remove restrictions on investment. Therefore, there can 
be an increase in intra regional investments, which in turn would 
increase the economic development of the region. Also, the region 
would be in a position to attract more investment from other 
countries due to its growth potential. 
8. Social and cultural relations 
Due to integration, there can be betterment of social and 
cultural relations in the region. The member countries can improve 
their relations with each other through the exchange and social 
programmes. This will indirectly help for the peace and prosperity of 
the region.