Development of Different Regional Blocks - Coursework Example

Regional locks are stumbling blocks or blocks which ensure growth of a region is a topic which is debated and needs to be examined from different perspective to ensure correct answers can be found out. I feel that regional blocks are not stumbling blocks but instead they are created with the objective to promote economic growth and ensure better opportunities in the future. The multilateral trade agreements have move ahead and looks towards freer trade agreements have thereby highlighted the manner in which economies have been able to benefit due to different trading blocks and provide an opportunity where all economies are treated equally and provided the opportunity to improve their business. This paper evaluates the manner in which development of different regional blocks has helped economies to grow and cannot be considered as a stumbling block as it has helped the economies to fetch better rewards and provided an opportunity for the economies to grow. This will thereby help to bring a change in the manner economies perform and will create a path through which better reforms and economic development will become possible. Economies which have developed regional blocks with neighbouring economies have been able to benefit from it as it ensures regional solidarity and provides an opportunity where development of all economies becomes possible. It has been identified by people that tariff bindings under WTO act as a better device that regional agreements as it provides an opportunity through which the different business proceedings are better controlled. This was witnessed in the case of Mexico which joined GATT before joining the NAFTA as the benefits which the economies will get due it surpasses the other benefits. Tariff bindings are clearly visualized in developing countries and are done with the objective of preventing the local industry. The regional blocks help to provide some bindings which thereby provides the solidarity which economies are looking and ensures that the economies are not exploited thereby providing and chalking out a path for better growth. The regional trade agreements provides an opportunity where economies based on the present economic conditions are able to make different bindings which thereby helps to ensure that a path through which economies can be protected at the same time opportunities for growth can be provided is ensured. This thereby creates a lobby where private sector is dealt in the best possible manner and an opportunity is created through which the business is able to maximize the overall gains and ensures that regional and trading blocs add towards multiplying the effectiveness and provides an opportunity for better growth. Building trade blocs also provides an opportunity where negotiations with larger units like a developed economy can be carried out in a better way. It is true that multilateral progress is slow and takes time for being developed so that the regional blocks are able to develop and ensure a path through which better growth opportunities can be ensured. This was clearly evident as members of the WTO which had over 100 small countries in 1996 and other members were waiting to get their place have been able to ensure that economies were able to ensure a better bargain and while working with different economies were able to transform the business of other economies. The smaller groups due to the development of trading blocs were better placed to deal with the manner in which negotiations take place. This has provided an opportunity where the different trading blocs were able to ensure that they were able to compete with other economies in the market. This has helped to increase the efficiency of negotiations and has provided an opportunity through which negotiations have fetched the best results. The European Union is one example where the different small economies have been able to come together and negotiate with other economies which are much bigger in size and has helped the economies to ensure that they are provided an opportunity to grow. This has helped the economies to come up with a unified voice and has thereby developed the economies to ensure that better bargain is available. It is true that that having building blocks can also impact the economies negatively as creating the blocks at times results in creating an environment where economies try to influence but when all economies participate and ensure that the rules which govern their business are developed keeping in mind the working culture has ensured that the economies are able to gain from the negotiating challenges which the building blocks provides. The opportunity of negotiating among the nearby neighbours helps to address the different smaller issues and provides an opportunity to come at a decision which is above the issue and aims at improving the economic condition of the society. This thereby ensures that the overall process looks at developing the required parameters through which economy is considered above other factors and thereby helps the economies to come together and work in a process through which maximum gains can be ensured. This will thereby help that the process of negotiation provides an opportunity through which the business objectives will be directed towards the growth of the economy. This thereby provides an opportunity through which the economies are able to perform and negotiate better so that better bargain is available and has thereby ensured that the economies is able to prosper in a better way. The development of trading blocs also provides an opportunity to develop export constituencies which will help to gain political momentum and ensure that the economies are able to ensure better returns. For an economy to grow it is imperative that the interest of exporters outweighs the interest of pro-protection which is present among import competing firms. The development of regional liberalization through the development of trading blocs provides an opportunity where export liberalized firms are able to bring a change in the manner economies work and can look at transforming the business so that maximum gains can be achieved. The bicycle theory also supports the same as it states that liberalization helps to gain the required momentum through which the resources can be used in the best manner as compared to deal end where economies don’t engage into economic blocs. Developing economic blocs also tends to provide economies of scale as it helps to find different FTA’s through which liberalization of the different sectors becomes possible. This helps to create the required opportunity through which economies are able to save on cost and bring about a change in the manner economies work. The development of WTO has helped different developing and poor economies to be prevented from being exploited and has provided an opportunity where correct returns are provided for the different resources which are used. This thereby compliments the business of the economy and creates an additional opportunity through which the business gains are multiplied and the business is able to maximize the opportunity of using the different resources to their advantage. The development of export constituencies through the development of trading blocs also ensures that the different economies which have the required resources which can be used for the development of the business provides maximum advantage. This thereby helps to build the required framework through which the different resources which are available fetches the correct prices and ensures no exploitation of resources takes place. This provides an opportunity where capital and labour can be moved from the present practices to areas which will multiply the returns and ensure that the business is able to improve the overall gains based on it. This thereby helps to create a framework where bilateral agreements provides an opportunity to engage in multilateral free agreements thereby providing an opportunity through which the different resources are used to develop the economies and ensure better returns. Development of trading blocs also favours the mechanism of competitive liberalization. This helps to reduce the bargaining power which developed economies shave and provides an opportunity where developing and poor economies are provided with an opportunity to develop with competitive economies. This helps the economies to learn the manner in which different developed economies perform and creates the required opportunity through which business gains are multiplied. The development of economies and the ability of economies to compete with developed economies results in the dismantling of trading blocs as economies are able to compete with other partners on their own. This thereby helps to ensure that economies are better liberalized and have the required exposure through which they are able to make major ramification and changes so that the productivity can be increased. This has resulted in the development of different trading blocs like NAFTA, GATT, WTO and other which helps to provide a degree of protectionism and ensures that the economies are better developed so that the business is able to maximize the gains from it. The smaller groups due to the development of trading blocs were better placed to deal with the manner in which negotiations take place. This has provided an opportunity where the different trading blocs were able to ensure that they were able to compete with other economies in the market. This has helped to increase the efficiency of negotiations and has provided an opportunity through which negotiations have fetched the best results. The overall productivity has thereby increased and has provided the required momentum through which economies are able to take decisions which has helped to multiply the overall gains. The development of trading blocs has also provided an opportunity where the different resources are being used in the best possible manner. This has helped to bring about a change and transformation in the manner economies work as it has helped the economies to ensure that while using the different resources the gains for the business are increased. This will thereby help that the process of negotiation provides an opportunity through which the business objectives will be directed towards the growth of the economy. The regional trade agreements provides an opportunity where economies based on the present economic conditions are able to make different bindings which thereby helps to ensure that a path through which economies can be protected at the same time opportunities for growth can be provided is ensured. The overall impact of such a decision is that the resources are not exploited and has provided the scope and room through which the business has been able to maximize the gains and has been able to bring a change in the manner business works. The growth and development of different trading blocs which is increasing at a rapid pace shows that economies have been able to gain due to it. This has forced economies to look at developing different trade blocs based on the region they perform so that so that better momentum can be gained through which the different resources are used in the best possible manner. This has to a certain degree ensured protectionism but at the same time has provided an opportunity for poor and developing economies to compete with other economies which are stronger. This thereby helps to develop the framework through which the economies are better placed and are able to bring about a change in the manner different decisions are taken. The overall impact of such a decision is that economies have been able to transform their business and have changed their business so that better economies gain can be achieved. This thereby compliments the business of the economy and creates an additional opportunity through which the business gains are multiplied and the business is able to maximize the opportunity of using the different resources to their advantage. The paper thereby analyzed the manner in which developing trading blocs have helped economies to bring about a change in the manner economies work. This has provided an opportunity to compete with other developed economies and provides an opportunity through which economies are better placed to deal with the different challenges which has been presented. This has helped to ensure that the resources are used in the best possible manner and has multiplied the overall gains through which economies will be able to compete with other economies in a better manner. The process will ensure that the resources are used in the best possible manner and will provide an opportunity where the economies are able to grow and develop their business based on different fundamentals which has shaped the overall process of carrying out different activities. Read More