A trading bloc is a type of intergovernmental agreement where regional barriers to trade, such as tariffs and non-tariff barriers, are reduced or eliminated among the participating states.
Reduced Border Controls: Within a trading bloc, member countries typically experience reduced customs checks and streamlined procedures at borders, leading to faster processing times.
Harmonized Regulations: Trading blocs often harmonize regulations and standards, which reduces delays caused by differing national standards and compliance checks.
Enhanced Cooperation: Increased cooperation among member countries can lead to better infrastructure and more efficient logistical coordination, further reducing lead times.
This reduction in border crossing scrutiny directly leads to shorter lead times, making option D the most likely effect on a supply chain within a trading bloc.
References
European Union. "The Benefits of Trade for Europe." Europa.eu.
World Trade Organization. "Regional Trade Agreements and the WTO." WTO.org.
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