International Regulatory Competition and Coordination: Perspectives on Economic Regulation in Europe and the United States

By William W. Bratton; Joseph McCahery et al. | Go to book overview

14
Dreaming Trade or Trading Dreams: The Limits of Trade Blocs

DANIEL DRACHE


1. INTRODUCTION

1.1 The seven principles of economic integration

The global trading system post 1945 was founded on the principles of liberal internationalism--multilateralism, non-discrimination, and the economic theory of comparative advantage. At its core, it promised to organize the world's trading system on a non-political basis so that dominant countries could not use political or military power to follow 'beggar-thy- neighbour' policies and gain an advantage over small and medium-sized nations. Instead, the good performance of nations everywhere was thought to depend on unimpeded technology and investment inflows from private investors, converging production costs, an extended hand to developing nations, and a well-managed set of macro-economic policies to ensure that investment flowed to the strategic sectors ( Friedman and Lebard 1991).

To be sure, the reality of the postwar system never fully corresponded with this frictionless vision of the international economy. Despite five decades of liberalized trade, few countries accepted the unqualified logic of efficiency as the principal theoretical foundation of postwar economic expansion. A judicious amount of protectionism enhanced rather than hindered many countries in their race to gain new export markets. Furthermore, the General Agreement on Tariff and Trade's (GATT) success in the postwar world was due in no small part to the fact that much of global trade was excluded from its purview. Services, agriculture, textiles, and intra-firm trade were outside its supervisory powers. It is estimated that by the beginning of the 1990s only a quarter of the world's trade was considered to conform to the precepts of trade liberalization ( Ruigrok 1991). Intra-corporate trade, barter, and bi-lateral 'preferential' trade understandings of all kinds accounted for most international activity. GATT's authority was partial at best and it was only able to establish enforceable benchmarks that states were supposed to follow. Nonetheless, these shortcomings did not prevent the system from working surprisingly well when USA hegemony was unrivalled. Trade expanded dramatically and tariffs fell

-417-

Notes for this page

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Default project is now your active project.
Project items

Items saved from this book

This book has been saved
Highlights (0)
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

Citations (0)
Some of your citations are legacy items.

Any citation created before July 30, 2012 will labeled as a “Cited page.” New citations will be saved as cited passages, pages or articles.

We also added the ability to view new citations from your projects or the book or article where you created them.

Notes (0)
Bookmarks (0)

You have no saved items from this book

Project items include:
  • Saved book/article
  • Highlights
  • Quotes/citations
  • Notes
  • Bookmarks
Notes
Cite this page

Cited page

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

1

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited page

Bookmark this page
International Regulatory Competition and Coordination: Perspectives on Economic Regulation in Europe and the United States
Table of contents

Table of contents

Settings

Settings

Typeface
Text size Smaller Larger Reset View mode
Search within

Search within this book

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Help
Full screen
/ 544

matching results for page

    Questia reader help

    How to highlight and cite specific passages

    1. Click or tap the first word you want to select.
    2. Click or tap the last word you want to select, and you’ll see everything in between get selected.
    3. You’ll then get a menu of options like creating a highlight or a citation from that passage of text.

    OK, got it!

    Cited passage

    Style
    Citations are available only to our active members.
    Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

    1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

    Cited passage

    Thanks for trying Questia!

    Please continue trying out our research tools, but please note, full functionality is available only to our active members.

    Your work will be lost once you leave this Web page.

    For full access in an ad-free environment, sign up now for a FREE, 1-day trial.

    Already a member? Log in now.