Question

Describe the potential benefits and the potential costs to global trade of the tremendous 4) growth in regional trade agreements.

Answer 1

ANSWER:

Whenever there is a regional trade agreement between nations , there is always a prefential treatment towards the nations which are there in the agreement and the idea of the most favoured nation gets diluted in the multilateral agreements.

The most important thing here for noticing is that the memebers who are not part of these trade agreements face barriers within these countries as the opportunities for them are less but if we look it in the long term these trade agreements are very useful as more trade is created and this creates a system in which these kind of arrangements can be tried out between different nations in the future.