Question

Can you please answer these three parts to a question regarding International Economincs?

(a) How is a multilateral trade agreement different from a regional trade agreement? Is there any reason to believe that one is better than the other? Please explain.

(b) Can only neighboring countries (European Union, NAFTA) form trade agreements, or can countries form trade agreements irrespective of where they are located? Please give an explanation.

(c) If a group of countries like the European Union form a “customs union” can an individual member of the group (eg. Spain) negotiate its own trade agreement with a non-member country (eg. India)? Please explain.

Answer 1

<sup>Multilateral trade agreements are between many nations at one time. For this reason, they are very complicated to negotiate, but are very powerful once all parties sign the agreement.

Advantages : The primary benefit of multilateral agreements is that all nations get treated equally. This levels the playing field, especially for poorer nations that are less competitive by due to their size.</sup>

b) not only for the neighbouring countries form trade agreements.the countries which is having a scope for trade but there is no platform to make the agreements those type countries become one union and do the trade agreements.

example:BRICS,SAARC

C) no, only the group countries get the benefit of negotioation.for non member country there is no possibility of negotioation.because it is not in the union and also it is opposite the guide lines of the agreement.