One of the most important instruments for increasing international trade activities among countries is regional and economic grouping. Economic grouping focuses on combining smaller national economies to form a larger economic unit. They seek to eliminate trade barriers and strengthen coordination and cooperation among the countries involved.
SAARC, European Union, ASEAN, G-8, G-20, BRIGS, and other regional and economic groups are formed to improve economic cooperation among states in the neighbourhood or those with common economic interests. This is especially important for emerging countries, as they are all competing not only with developed countries, but also with each other in the very small economic space available to them.
Furthermore, because all major common economic activities in the region have an impact on total human development in a shared environment, collaboration with other economies in our neighbourhood is essential.