Seminararbeit, 2011
46 Seiten, Note: 2,0
This seminar paper examines the process of trade liberalization in Europe, particularly focusing on the relationship between regionalism and multilateralism. It aims to explore the various forms of trade agreements, analyze the reasons and outcomes of trade liberalization, and assess the effects of trade liberalization on Europe.
This seminar paper focuses on the key concepts of regionalism, multilateralism, trade liberalization, trade agreements, trade creation, trade diversion, the Juggernaut Effect, the Domino Effect, and the "Spaghetti Bowl" effect as applied to the European context.
The multilateral Juggernaut effect uses the principle of reciprocity to explain how tariffs can be reduced to zero over time through long-term negotiations involving all goods.
A domino effect occurs when countries outside a regional trade agreement (RTA) feel pressured to join to avoid losing market connection and cost advantages as more of their neighbors participate.
The "Spaghetti Bowl" refers to the complex tangle of diverse and overlapping bilateral and regional trade agreements that can create confusion and inefficiency in international trade.
Trade creation occurs when high-cost domestic production is replaced by low-cost imports from a member country. Trade diversion happens when low-cost imports from outside the agreement are replaced by higher-cost imports from a member country.
Common in Asia, this involves countries lowering tariffs unilaterally to attract outsourced workloads and manufacturing from developed nations.
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