A Comparison Between Multilateralism and Regionalism in Terms of Efficiency

London South Bank University & University of Applied Sciences Mainz
Master of Science – International Business

Course: International Business Economics

Title: New Regionalism (2,002 words)
Lecturer: Prof. Dr. Ulrich Schüle

Assignment: What do you understand by the "new regionalism"? Discuss whether the effects of this are positive or negative in economic efficiency terms of the global economy.

Tobias Baumert Hinter der Kirche 17 55129 Mainz

London South Bank University - ID: 2906244 University of Applied Sciences - ID: 901712 27 November 2012 1

Table of Contents
Introduction................................................................................................. 1 1. Why Multilateralism leads to Impasse..................................................... 1 2. The Way to New Regionalism................................................................. 2
2.1 Static Effects........................................................................................ 3 2.2 Dynamic Effects................................................................................... 4 2.3 Political Condition................................................................................. 5

3. Conclusion.............................................................................................. 6

2

List of abbreviations
CAP EC EC 6 ECU EEC EU e.g. FOEGA FTA GATT GDP LDC MFA NAFTA NTB RTA ROW TC TD ToT USA WTO Common Agricultural Policy European Community Belgium, France, Germany, Italy, Luxembourg, Netherlands European Currency Unit European Economic Community European Union exempli gratia European Agricultural Guarantee and Guidance Fund Free Trade Agreement General Agreement on Tariffs and Trade Gross Domestic Product less developed country Multi-fibre Agreement North American Free Trade Agreement Non-Tariff Barrier Regional Trade Agreement rest of the world Trade Creation Trade Diversion Terms of Trade United States

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