Securing Higher Grades Costing Your Pocket? Book Your Assignment at The Lowest Price Now!

Globalization And Liberalized Trade Theory Add in library

8 Download3 Pages 646 Words

Question:

Describe about the Globalization and Liberalized Trade Theory?
 
 

Answer:

Economists and politicians are involved into significant debate on choosing the best approach between regional trade agreement and global trade liberalization. The major point of argument is to identify which strategy is better for various countries as well as global economy (COLLINS, 2010). Additionally, several studies have emphasized on analyzing whether these two approaches are contradictory or complimentary.

From the late 20th century, the wave of globalizations has assisted in abolishing the barriers of the international trade. Empirical studies have been conducted for indentifying the difference in two approaches: regional trade agreement and global trade liberalization (DAVIS, 2011). It has been observed that implementation of the regional trade agreements have significantly contributed in increasing the trade among their members. In other words, the intra group trade has enhanced by the regional trade agreements (Thirlwall, 2000). However, it has been found that in case of regional trade agreements, intra group trade contributes very little of the total trade. The share of intra group trade is significantly lower against the total export, but it has managed to achieve continuous growth over the period. Hence, it can be found that regional trade agreement is one of the most important driving forces for increasing the intra group trade (Vamvakidis, 1998).

In case of most of the regional trade agreements, the share of intra group trade has been significantly small. Consequently, the effect on growth was not prominent. It has been observed that the effort of the regional trade agreements was not successful in terms of creation of large regional markets (Park, 2006). It had wasted the valuable tome for broader liberalization. It has been observed that in most of the cases of regional trade agreement, the average intra group trade shares have been very poor. However, the statistics have been found to be slightly different in case of EU.

While the small developing nations join a regional trade agreement, which will majorly include the small developed countries. It has been observed that most of the countries have similar economy of the neighbor countries (DAVIS, 2011). Very few developing nations are in the same region with the developed nation. Consequently, the intra trade share will be low. Studies have demonstrated that most of the regional trade agreements have been prominent among the small developing economies having higher protection.  On the other hand, empirical studies have demonstrated that, in case of both short run and long run growth has been faster after the broader global trade liberalization (Mukerji, 2009). It has been observed that short term and long term growth in the nations are higher in case of the global trade liberalization (Di Caprio, 2011).  Short terms and long term impacts are positive as well as statistically significant in case of the broader international liberalization. The nations will grow in a faster way in short and long run after these nations open their market without discrimination to the international trade (Baier and Bergstrand, 2007).

 

References

Baier, S. and Bergstrand, J. (2007). Do free trade agreements actually increase members' international trade?. Journal of International Economics, 71(1), pp.72-95.

COLLINS, S. (2010). Regional Trade Agreements and Democracy Promotion: Measuring the Influence of Democracy Requirements in Regional Trade Agreements. Politics & Policy, 38(4), pp.737-764.

DAVIS, G. (2011). Regional Trade Agreements and Foreign Direct Investment. Politics & Policy, 39(3), pp.401-419.

Di Caprio, A. (2011). Backseat Drivers: The Political Economy of Trade Liberalization. International Studies Review, 13(2), pp.322-324.

Mukerji, P. (2009). Trade Liberalization And The Extensive Margin. Scottish Journal of Political Economy, 56(2), pp.141-166.

Park, I. (2006). East Asian Regional Trade Agreements: Do They Promote Global Free Trade?. Pacific Economic Review, 11(4), pp.547-568.

Thirlwall, A. (2000). Trade Agreements, Trade Liberalization and Economic Growth: A Selective Survey. African Development Review, 12(2), pp.129-160.

Vamvakidis, A. (1998). Regional Trade Agreements Versus Board Liberalization: Which Path Leads to Faster Growth? Time-Series Evidence. IMF Working Papers, 98(40), p.1.

OR

At MyAssignmenthelp.com, we understand that when students get stuck with tough assignments, they look for affordable services. To assist students with complex assignments, we have built a team of skilled cheap essay writers. MyAssignmenthelp.com has become one stop solution for all students who often look for answers related to their search similar to do my essay at the cheap rate or who can write my essay at affordable prices. Students prefer hiring us as we have the best provisions to render services related to do my essay online at a reasonable rate.

Most Downloaded Sample of Management

271 Download1 Pages 48 Words

Toulin Method Of Argumentation

You are required to write a researched argument essay that convinces persuades the reader of your position / stance. This is an academic, researched and referenced do...

Read More Tags: Australia Arlington Management Management University of New South Wales Management 
202 Download9 Pages 2,237 Words

Consumer Behavior Assignment

Executive Summary The purpose of this report is to elaborate the factors which are considered by individuals before selecting an occupation. Choosing an occupati...

Read More Tags: Australia Arlington Management Management University of New South Wales Management 
367 Download13 Pages 3,112 Words

Internet Marketing Plan For River Island

Introduction With the increase enhancement in the field of technology, it has been considered essential by the businesses to implement such technology in their b...

Read More Tags: Australia Arlington Management Management University of New South Wales Management 
326 Download9 Pages 2,203 Words

Strategic Role Of HR In Mergers & Acquisitions

Executive Summary In a merger & acquisition, role of an HR has emerged as a very critical function. At each stage of merger and acquisition process, HR plays a s...

Read More Tags: Australia Arlington Management Management University of New South Wales Management 
353 Download7 Pages 1,521 Words

Relationship Between Knowledge Management, Organization Learning And HRM

Introduction In this competitive business environment where every business organization is trying to attract the customers of each other, it becomes essential for ...

Read More Tags: Australia Arlington Management Management University of New South Wales Management 
Next
Free plagiarismFree plagiarism check online on mobile
Have any Query?