MGOs operate across different states. Some examples are

• International: World Bank, IMF, UN
• Regional: North American Free Trade Agreement (NAFTA), European Union (EU)

Most MGOs focus on enhancing trade and interactions, yet some may practice protectionism.

Real-World Example: The EU, established by multiple European countries, focuses on promoting economic cooperation and integration.

Trading blocs are groups of countries that have agreements to allow free trade between member countries and impose tariffs on non-members.

Examples of trading blocs include: EU, Association of South East Asian Nations (ASEAN), NAFTA, Union of South American Nations (UNASUR).

There are four levels of trading blocs:

• Free Trade Areas: No tariffs and quotas on trade between members, but restricts imports from non-members. Example: NAFTA.
• Customs Unions: Free trade between members, common external tariff on imports from non-members. Example: Mercosur.
• Common Markets: Customs markets with free trade in goods and services, free movement of people and capital.
• Economic Unions: Allows free trade and free movement of people and capital, but also requires members to have common policies on sectors like agriculture, industry, and regional development. Example: EU.

Real-World Example: The EU started as a common market when the UK joined in 1973. It gradually integrated and became the European Union in 1993. However, in 2016, the UK voted to leave the EU.

NAFTA was signed in 1994 between the USA, Canada, and Mexico, creating one of the world's largest free trade zones. Its goals were to eliminate trade barriers, promote economic competition, and increase investment opportunities.

However, there has been criticism, including job losses due to low-cost labor in Mexico and environmental concerns due to lax enforcement of environmental laws in Mexico.