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The different development and changes in every day life introduce a new world system .The Internet and technological developments in telecommunications connect all the nations together but in the same time it does not mean that there is no barriers especially trade barriers .to regulate the world trade barriers and injustice, countries cooperate and construct the World Trade Organization. WTO promotes the free trade zones and equal trade regulations to increase competition in global market. But regardless of the size of the business there are regulations to govern exports and imports. To minimize these losses from barriers and regulations is important. Thus, there are regional trade blocks to associate nations at a governmental level to promote trade and defend the members against competition. The defense mechanism against global competition obtained through making tariffs on goods produced by member countries, import quotas, government subsidies, and technical and non-tariff barriers. As trade is not an isolated activity member countries also cooperate in political, security, climatic, economic and other issues affect the region.

Countries participate regional blocs because of its advantages in trade and economy. Transaction costs between countries will be eliminated. It will be easier to compare prices between participants. Uncertainty caused by exchange rate fluctuations will be blocked. The inflation in member economies will decrease. It will reduce the cost of the firms and increase the trade. But also there are some disadvantages but they are not as much as advantages. There can be instability of the system, which means demand of the markets, can change rapidly and it will take time to keep up. There can be over estimation of benefits, because one countries output can be input of an other country so you can calculate 2 times in the overall

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