Bicycle Theory

Bicycle theory in Global Commerce Policy

In this regard, a definition of this issue is as follows: the proposition that the multilateral trading system must keep moving forward through successive liberalizing rounds and agreements if it is to remain liberal. The entries on trade policy in the Encyclopedia are here. On this analogy, the system would fall over like a bicycle if long gaps between liberalizing moves were to permit protectionist sentiments and actions to become dominant. The evidence for this proposition does not appear all that strong. See also protectionism.[1]

Bicycle theoryin the wold Encyclopedia

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

Resources

Notes and References

1. Dictionary of Trade Policy, “Bicycle theory” entry (OAS)

See Also