Trade Liberalization In International Trade
As Asafu-Adjaye and Mahadevan (2009) states, “regional trade agreements may be viewed as a step towards global trade liberalization” (p. 512). It is true that as trading effects such as trade creation and trade diversion take place, other nations will want to become a union member and thus create larger and larger trade liberalization as a result. Therefore, trade liberalization and free trade agreements can work in concert with one another and continue to support and grow all economic revenues across the globe. While the perfect balance has yet to be created and many studies focus on the perfect storm, there is no true way to fully understand the impact of only having one or the other in a truly global marketplace. As free trading agreements continue to grow, there might be evidence to support the concept that trade liberalization is after all a direct response to the creation of positive and congenial smaller free trade agreements.