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Regional integration and the new type of commercial warfare

Author

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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.

Suggested Citation

  • Rotaru, Marius-Petre, 2008. "Regional integration and the new type of commercial warfare," MPRA Paper 17929, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:17929
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    File URL: https://mpra.ub.uni-muenchen.de/17929/1/MPRA_paper_17929.pdf
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    References listed on IDEAS

    as
    1. Rolf J. Langhammer & Matthias Lücke, 1999. "WTO Accession Issues," The World Economy, Wiley Blackwell, vol. 22(6), pages 837-873, August.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

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

    JEL classification:

    • F15 - International Economics - - Trade - - - Economic Integration
    • F18 - International Economics - - Trade - - - Trade and Environment

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