Balance Of Advantages

Balance of advantages in Global Commerce Policy

In this regard, balance of advantages is: a principle sometimes used in multilateral trade negotiations which holds that advantages derived from the exchange of concessions in trade negotiations should be broadly balanced among participants. The balance is usually achieved through the requests-and- offers technique. This principle is not based on economic theory, and some surprising justifications for the existence or absence of a balance have been offered. The ultimate basis of this principle is the fallacious assumption that trade liberalization entails a cost to the liberalizing country. See also mercantilism.[1]

Balance of advantagesin the wold Encyclopedia

For an introductory overview on international trade policy, see this entry.

Resources

Notes and References

1. Dictionary of Trade Policy, “Balance of advantages” entry (OAS)

See Also