Domino Theory Of Regionalism

Domino theory of regionalism in Global Commerce Policy

In this regard, domino theory of regionalism is: proposed by Richard Baldwin in 1993. He postulated that the growing interest in the early 1990s in the United States- Mexico free-trade agreement and the European Community ™s single-market program was not due to dissatisfaction with the slow progress in the Uruguay Round as some claimed. Rather, in his view, it was due to fears by countries outside these arrangements that they would be disadvantaged once the arrangements became operational. These fears would then prompt them to seek membership also. Baldwin says that in any country the political equilibrium determines the country ™s stance on regional liberalization. The entries on trade policy are here. If enough exporters feel they are threatened by an emerging free-trade arrangement, they can bring about a change in the country ™s policy towards that arrangement. The expanding membership of the arrangement so prompted would then induce yet others to seek membership also because they in turn might now be harmed or at least feel disadvantaged as non- members. See also European Community Single Market and NAFTA.[1]

Domino theory of regionalismin the wold Encyclopedia

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

Resources

Notes and References

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

See Also