Economic and Political Issues for Governments and Firms
- New Horizons in International Business series
Edited by Sidney Weintraub, Alan M. Rugman and Gavin Boyd
12. The hemisphere in the international political economy Sidney Weintraub and Gavin Boyd A free trade area of the Americas that is not slimmed down in substance will have a great potential to complement the role of the European Union as a large advanced regional system in the international political economy. The USA and the European Union (EU) dominate the world trading system, and the prominence of this Atlantic relationship, based on large scale structural interdependencies, will be increased as countries in the Southern Hemisphere become more closely linked, economically and politically, with the USA. Industrializing countries in East Asia, South Asia, the Middle East and Africa have been unable to form viable systems of regional economic cooperation. Of the major transnational economies, Russia is still recovering from acute recent macromanagement failures, and China, developing a system of national socialism with the support of substantial foreign direct investment, is forming economic ties with nearby states, but shows ambivalence about cultivating closer relationships, and this is reciprocated. As a free trade area, the Western Hemispheric system will be an elementary form of regional economic integration in which rising levels of structural interdependence will tend to motivate consultations for the harmonization of policies conducive to further market integration, subject to the effects of cultural and political differences that will restrain initiatives for collective management. The elementary level of integration will entail a weaker capacity than that of the EU for coordinated involvement in the world economy, and the contrast will become sharper...
You are not authenticated to view the full text of this chapter or article.
Elgaronline requires a subscription or purchase to access the full text of books or journals. Please login through your library system or with your personal username and password on the homepage.
Non-subscribers can freely search the site, view abstracts/ extracts and download selected front matter and introductory chapters for personal use.
Your library may not have purchased all subject areas. If you are authenticated and think you should have access to this title, please contact your librarian.