International Economics



1. Analyze and describe the impact of the different forms of regional trading arrangements on international trade.

The regional governments have taken an initiative for regional trading by launching both free trade areas and custom unions in one specific region to ease up as well as enable the intra-regional trade between them. In the international economy, the Regional trade is gaining in much more importance. Approximately 60% of entire global trading today, the Regional trading agreement (RTA) has increased by 9 times as compared to the years in 1980s. At present, approximately 45% for the international trading is dominated by the RTA. Due to the stumbling in multidimensional negotiations the regional trading got promoted day by day. There are many types of Regional Trade Agreements which gives many rewards to the neighboring countries. Due to this there is an increase in their countries activity and development as well as multilateral in trading system. The most important part of development plan for a developing country as well as developed country is the Regional Trade Agreements.Regional Trade Agreements is a phenomenon which is irretrievable. There is a continuously increase in the global trading due to the no of privileged contracts between the countries by using the RTA. RTA being a complex strategy is due to the Economic considerations but there are many other aspects which include political considerations and others. The RTAs is an advantage for both WTO as well as multilateral systems.

1. The regional trade agreement has changed the countries positions which is clearly noticeable; all the countries which trust on multidimensional trading and to make Regional trade agreement their main trading policy.

2. The judicial structures are very firm as well as comprehensive in several cases which made the RTA more composite than the WTO's.

3. The developed as well as developing countries are getting into more and more Mutual privileged agreements between them, so there is now less reliance on non mutual privileged systems in both type of countries.

4. The RTA is regional but the dynamics show parallel kinds of parting as well consistency. There was increasing number of cross regional agreements in the first place we saw, which helped in the growth of RTAs activities. In the second place, RTAs are also more active and vital comparing as they are continental ground based now than the previous decades. (Boisso, D. and M. Ferrantino 1996)

2. Analyze and describe the role of the major international trade and financial institutions in fostering trade.

The main role played in there designing of the global trading charter is due to the global financial crisis and the trade blocks. Also, the trade flows and the export growth has been dropped down more than two thirds in the years 2007 to 2009, this is due to the economic crisis and the social damages. The transport of vessels is not only what the trading is about.For me it's like creating an environment which has assets and expertise, knowledge and opportunity which can range all over the globe especially ...