In recent years there has been a rapid growth in the number of regional trade agreements involving developing countries. What factors account for this growth What are the potential advantages and disadvantages of regional trade agreements compared to mul - Essay Example

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In this essay factors accounting for this growth are considered which include politics, economics and sustainable business-related concerns. RTAs are…
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In recent years there has been a rapid growth in the number of regional trade agreements involving developing countries. What factors account for this growth What are the potential advantages and disadvantages of regional trade agreements compared to mul
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Extract of sample "In recent years there has been a rapid growth in the number of regional trade agreements involving developing countries. What factors account for this growth What are the potential advantages and disadvantages of regional trade agreements compared to mul"

Download file to see previous pages ific concern on trade creation, trade diversion and discrimination; and the probable advantages or disadvantages of TRAs over multilateral trading system.
The world is changing rapidly into a global village and trade between countries has increased promptly with more openness of countries to goods, services, capital as well as ideas and knowledge. The volume of trade of merchandise goods for export has grown from approximately $62 billion in 1950 to $6,327 billion in 2000 (Bora, Grynberg & Razzaque, 2004). This means that over fifty years, trade on merchandise goods grew by more than 100 times.
One of the reasons why trade increased in haste especially in today’s modern economic market is the ability of every country to embrace Multilateral Trade Agreements (MTAs), which seek to implement role, policies and procedures that could benefit every member especially in their trade participation. However, lately the popularity of Regional Trade Agreements (RTAs) could prove remarkable trade creation at some certain point, as it seeks to eliminate barriers to trade and encourage flexible trade agreements between the participating countries.
Politics, economics and sustainable business-related concerns are some of the factors that are commonly viewed accounting for the growth of RTA. However, there are many existing issues regarding RTAs but the most common are in line with the factors that definitely caused their rise; the specific concern on trade creation, trade diversion and discrimination; and the probable advantages or disadvantages of TRAs over the Multilateral trading system. These factors are viewed to probably give rise for the growth of RTAs. Thus, it is important to understand the probable advantages and disadvantages of TRAs over multilateral trading system in general.
However, some additional common reasons for the popularity of RTAs could be substantially explained through traditional economic welfare argument, dynamic economic gains, deeper integration ...Download file to see next pagesRead More
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