Publisher's Synopsis
The world economy is commonly seen as becoming divided into trading blocks, in North America, Europe and elsewhere, and there is concern that this will result in the breakdown of liberal trade. This book examines these ideas critically, and considers and extends the economic theory of trading blocks and its implications for policy. The book examines in detail the relationship between exchange rate stabilization, exchange rate variability and trade, and looks at the theoretical and practical issues which the European Monetary System has thrown up. Other issues covered include the consequences for trade and welfare of large imperfectly competitive producers within and outside a block, capital and labour migration, regional policy, subsidy rules, employment rules and environmental standards.
