Various Countries have come together to form various regional and economic groups like
BRICS
European Union
ASEAN
G-8
G-20
Some of these are Regional Groups
(Group of Countries found in similar Regions of world)
Example
SAARC (All South east Asian Countries)
European union (All European Countries)
ASEAN (All South Asian Countries)
Some of these are Economic Groups
Countries who share similar economic Status
Example
Group of Developing Countries (BRICS)
Group of Developed Countries (G8)
Name of Economic Group Countries who are Member
| Name of Group | Countries Involved | Common Point |
| BRICS | Brazil, Russia, India, China, South Africa | All are Emerging Economies |
| G-8 | France, Germany, Italy, the United Kingdom, Japan, the United States, Canada, and Russia | Group of 8 highly Industrialized Countries like |
| G-20 | All Major Counties of world including India, China, USA(but doesn’t include Pakistan) | Group of 19 Countries + European Unions |
What is Purpose of forming these Economic and Regional Groups?
1. Strengthen Local Economy
To Strengthen their Domestic Economies by learning from other countries operating in shared environment
2. Safeguard Common Interests
To Seek Cooperation from Other Members facing similar issues
3. Peace and Stability
To Maintain Peace and Stability in Region
4. Promote International Trade
Different countries make trade groups to fix price for their product and prevent competition among member
NCERT Questions
Question 1
Why are regional and economic groupings formed?
View answer
Regional and Economic groupings were formed because they fulfill the following purposes:
1. Strengthen Local Economy
To Strengthen their Domestic Economies by learning from other countries operating in shared environment
2. Safeguard Common Interests
To Seek Cooperation from Other Members facing similar issues
3. Peace and Stability
To Maintain Peace and Stability in Region
4. Promote International Trade
Different countries make trade groups to fix price for their product and prevent competition among member
Question 2
What are the various means by which countries are trying to strengthen their own domestic economies?
View answer
Various means used by countries to strengthen their own domestic economy:
1. Some Countries have come together to form various regional and economic groups like:
BRICS, European Union, ASEAN, SAARC etc
2. Nations are having various economic reforms.
They are going global, opening up their economy and also liberalizing it by reducing certain restrictions.