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Regional integration and the new type of commercial warfare

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  • Rotaru, Marius-Petre

Abstract

The lowest the number of the regional integration areas, the higher the propensity for protectionism (Krugman). The revival of regional protectionism measures meets the case of a commercial warfare. In the largest integrated market, investors must “play” by strict rules, so that a balance between productivity and risk should be kept. The elasticity in replacing the goods interchanged across local areas commensurate with the frequency of intra-regional and extra-regional goods replacement by consumers, depending on how prices evolve. The challenge of cross-area regional integration commercial warfare might lessen to the extent that these few areas are strong enough to build their global commercial relationships upon cooperative arrangements rather then conflict-wise solutions.

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Bibliographic Info

Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 17929.

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Date of creation: 30 May 2008
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Handle: RePEc:pra:mprapa:17929

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Related research

Keywords: regional integration; protectionism; commercial warfare; elasticity; global cooperation; Romania’s commercial security;

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  1. Langhammer, Rolf J. & Lücke, Matthias, 1999. "WTO accession issues," Open Access Publications from Kiel Institute for the World Economy 2315, Kiel Institute for the World Economy (IfW).
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