Economic and Political Issues for Governments and Firms
New Horizons in International Business series
Edited by Sidney Weintraub, Alan M. Rugman and Gavin Boyd
A Free Trade Area of the Americas will constitute a new regional economy, new because of its size, diversity, and potential, with a central member that is already new in terms of being knowledge intensive, achieving advances in applied frontier technology ahead of other major industrialized states. The USA’s status as the central member will tend to become more significant, through growth generated by entrepreneurial dynamism, and through contributions to regional policy learning and the learning of corporate managements, as well as through assertions of interests on issues of trade and investment cooperation. Difficult macromanagement problems will have to be overcome in the USA, however, for highly constructive involvement in the vast new regional economy. Efforts to reform corporate governance will have to continue, fiscal prudence will be required, and the current account will have to be brought into balance, while the financial sector will have to provide more productive funding for the real economy, with much less destabilizing speculation. Consideration of these imperatives in the regional context is necessary because of the persistence of serious macromanagement problems in Latin America. In this volume we have been privileged to have contributions by distinguished area specialists. They have recognized, from differing perspectives, the relevance of the European Union’s experience of regional economic integration, its slow processes of policy learning and its low overall growth rates. Hopes of forming a more vigorous regional economy in the hemisphere have been indicated, with understandings of the efficiencies of widely coordinated entrepreneurship, active across national...