1) Will countries be better off under a multilateral economic liberalization reg

Question

1) Will countries be better off under a multilateral economic liberalization regime or under a system of regional economic integration? Why?

2) How useful is economic geography in explaining the success of regional economic integration blocs? Give examples.

3) Why are countries pushing to sign regional integration blocs?

4) Although the European Union is the most advanced form of regional integration, it is currently facing a challenging time. What are some of the major challenges facing the EU?

5) NAFTA has improved Mexico-U.S. trade and investment, yet bilateral trade between the United States and China is greater than with Mexico. Why is this true?

Explanation / Answer

Ans 1)
If the multilateral economic liberalization regime fails to continue then system of regional economic integration would be the future.Since there is uncertainity pertaining to the outcome of the Doha Round of trade negotiations, Many countries Big and small have started opting for regional economic integration in terms of not only trade but also other areas such as environment,security ties etc.This results in slowing the multilateral economics liberalization regime.Regional economic integration blocs such as NAFTA,ASEAN and Euro Union are examples of successful regional integrations.While theoretically multilateral libralization is the best theory and regional economic integration is the second best, in reality the latter is more successful and at use. Regional economic integration which has incorporated political economy and security considerations, driven as much by private sector activity, especially FDI and TNCs, is indeed rising.It has also lead to a growth of 12.5%.

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