Trading Blocs Research Articles

Diversification of the concept of foreign economic activity of russian banks in the new economic conditions Yulia S. Polozhentseva1

Relevance. Russian banks actively participate in international trade and economic relations. However, taking into account geopolitical and economic changes, such as sanctions and changes in trade blocs, banks need to develop strategies for effective expansion of their activities at the international level. Business planning for the geographical development of foreign trade will help banks to adapt to new market conditions, determine optimal strategies and resources for the development of export-import operations, as well as minimize risks and increase competitiveness on the world stage..The purpose is to conduct a comprehensive study of the possibilities of geographical development of the foreign economic activity of Russian banks..Objectives: analyze regional markets for their potential; to determine the main advantages and disadvantages of the activity of foreign trade of Russian banks; will identify the peculiarities of the bank's exit to the new dawn within the framework of foreign trade, draw up a business plan and determine the criteria for the success of the project.Methodology. In the process of research, general scientific methods of logical and statistical analysis, field research, as well as qualitative and quantitative analysis were used.Results. 10 Russian banks, their foreign trade development strategy and future prospects were considered. The regions in which the opening of a bank branch will be the most successful for foreign trade have been identified: Tatarstan, Primorsky Krai, Kaliningrad Oblast, Yekaterinburg. A business plan for entering a new regional market for a bank with a focus on foreign trade has been drawn up, taking into account industry specifics.Conclusion. The foreign trade development strategy allows banks to expand their client base, increase their global presence and provide their clients with access to international financial services.

REGIONAL COMPREHENSIVE ECONOMIC PARTNERSHIP AND THE EUROPEAN UNION: OPPORTUNITIES AND CHALLENGES

The Regional Comprehensive Economic Partnership (RCEP) is a historic trade deal that has had a huge impact on drastically reshaping the economic landscape of the entire world. Formally established in November 2020, it represents a monumental achievement in regional cooperation and integration. The European Union (EU) has been a pioneering force in forging global trade agreements that have far-reaching implications for the world economy. As one of the largest trading blocs, the EU plays a pivotal role in shaping international trade policies and fostering economic integration. This study investigates the crucial role that the European Union plays in global trade agreements, concentrating on their influence on the evolution of sustainable business practices, diplomatic ties, and economic growth and prosperity. The present study is a descriptive study on the implications of RCEP for the European Union, the challenges it poses and the available opportunities.

US international trade policy: Scenarios of protectionism and trade wars

US international trade policy under both the Trump and Biden administrations has been increasingly protectionist. This paper considers two policy scenarios under active discussion: (1) an across-the-board increase in all US tariffs by 10 percentage points, and (2) a severe escalation of the US trade war with China. The scenarios are analyzed using a multi-country computable general equilibrium (CGE) simulation model of the global economy. Trade wars or policy regimes of widespread protection will increase tariffs in many sectors simultaneously and include both final goods and intermediate inputs. The impacts are complex, with a web of direct and indirect forces coming into play across domestic and international markets. The global CGE model captures these mechanisms, including both short and long-run effects, with and without retaliation by partner countries. In a world economy where the US accounts for only 10 % of global trade and potentially rival trade bloc have emerged in Europe and E&SE Asia, the US is no longer hegemonic in global markets. We find that across-the-board tariffs do not protect manufacturing jobs because the cost of imported intermediate goods increases, raising costs in manufacturing production. The US trade war with China leads to a dramatic fall in bilateral trade. Other countries expand their trade to China and the US with the exception of closely linked partners (e.g. Canada and Mexico and all countries in E&SE Asia). We find that the world economy can adjust to US trade wars, diverting trade around the US.

Germany's Economic Integration: Automotive Industry and FDI Analysis

In this paper, Germany's significant role was explored in regional integration and its competitive edge in the automotive manufacturing industry, underlining the country's strategic involvement in the European Union and World Trade Organisation. Germany’s participation in the EU has been instrumental in promoting economic integration across Europe, benefiting from free trade agreements and contributing to the EU’s status as a major trade bloc. The paper also delves into the reasons behind Germany's prowess in the automotive sector, using Porter's Diamond Model to analyze factors like advanced technology, skilled workforce, strict consumer standards, and supportive industries, all contributing to the country's global competitiveness in this domain. Furthermore, the study investigates the dynamics of Foreign Direct Investment (FDI) in Germany, identifying key attractions for foreign investors such as technological leadership, a robust market, efficient infrastructure, and favorable investment policies. However, challenges like rigorous government regulations on FDI and cultural differences pose potential hurdles for foreign investors. The conclusion emphasizes that while Germany offers substantial opportunities due to its economic strength and market potential, foreign entities must carefully navigate these challenges to successfully invest and operate in the German market.

Environmental Regulation and foreign trade: an analysis for the CAN and MERCOSUR trade blocs in the period 2001-2019

Environmental Regulation and foreign trade: an analysis for the CAN and MERCOSUR trade blocs in the period 2001-2019

The Mercosur Socio-Labour Declaration and the importance of judicial activism

Given the fragmentary and uneven development of Mercosur, the adoption of the Mercosur Socio-Labour Declaration has been a bold attempt to protect workers’ fundamental rights within a regional trade bloc. It was first adopted in 1998 and then substantially revisited in 2015. This article explores how Mercosur bodies and, particularly, national judges and their activism have circumvented the current intergovernmental institutional framework to consider the Socio-Labour Declaration as a justiciable instrument. This has allowed workers and citizens to rely upon it to challenge domestic legislations and protect their fundamental rights in the workplace. This piece concludes that an already overdue revision should not only reform the legal nature of the Socio-Labour, which should become a protocol to the Treaty of Asuncion, but should also regulate two crucial areas that are already shaping the Mercosur Member States’ labour markets, namely: platform work, and climate change with a particular focus on green jobs and just transition policies.

EUROPEAN POLICY VECTOR M. THATCHER, T. MAY, L. TRUSS: EUROSCEPTICISM, BREXIT, DISTANCING

The article is devoted to the European course of Prime Ministers M. Thatcher, T. May and L. Truss, based on the analysis of a wide range of sources and literature, the British policy regarding Euro integration in the period 1979-1990, and 2016-2019 is examined. and 2022. The work identifies the main stages and main directions of each of the three ladies - heads of government of the United Kingdom in the formation and implementation of the British strategy in a united Europe. We examined the reasons, goals, features and factors of London’s political course regarding the Brussels model of deepening and expanding cooperation from the European Economic Community to the European Union. It is shown that, firstly, the Thatcher government sought to use the Common Market as a trade and economic bloc, membership in which could contribute to both the economic growth of its country and the restoration of Britain’s global role in Europe and in the world. This task was solved by Thatcher through sharp confrontation, defending British interests, and receiving benefits and preferences from participation in the Community. Secondly, after the decision of the referendum on leaving the EU, T. May led a complex and contradictory negotiation process to develop conditions with Brussels, the British Parliament and the Conservative Party, which found itself in crisis due to disagreements on Brexit, which led to T. May’s resignation. Thirdly, the course of the L. Truss cabinet, in a situation of economic crisis, was focused on protecting British interests in trade and the fight against illegal migration but did not lead to noticeable results.

The impact of preferential market access: British imports into Canada, 1892–1903

AbstractCanada initiated the formation of the (modern) imperial trade bloc in 1897 when it extended preferential market access to imports from Britain. British goods initially received a preferential reduction of one eighth of the applicable duty, rising to one quarter in 1898 and one third in 1900. Because duties varied across imported commodities, the uniform relative margins of preference resulted in cross‐commodity variation in the absolute margins of preference. This cross‐commodity variation is exploited in our paper. Relying on a data set that includes over 32,000 Canadian import products, we find that a 1 percentage‐point increase in the absolute margin of preference was associated with a 5.4% increase in the value of imports from Britain. Counterfactually, if Canada had not adopted a preferential trade policy, by 1903, the value of British imports into Canada would have been reduced by approximately one half.

Advancing regional cooperation within AfCFTA through an integrated cross-border e-commerce system

ABSTRACT The digital economy has become an essential factor in economic diversification, yet regional trade blocs lack support for putting in place legal mechanisms to facilitate cross-border e-commerce activities between their member states. This article examines the potential for cross-border e-commerce in the context of the African Continental Free Trade Area (AfCFTA) by identifying opportunities but also critical challenges in its Digital Trade Protocol. It also reviews the laws and regulations governing e-commerce in each signatory to the AfCFTA – including those laws related to e-transactions, data protection and privacy, consumer protection and cybercrime – taking a deep-dive into discussing the legal environment necessary to support cross-border online business activities. Based on this analysis, this article offers important insights and recommendations for policymakers, proposing an integrated cross-border e-commerce system based on a centralised shipping method. Specifically, it recommends harmonising customs procedures, improved infrastructure, and financing mechanisms.

The costs and benefits of rules of origin in modern free trade agreements

Rules of origin offer preferred market access for final goods whose inputs originate mostly within a free trade agreement. Governments often champion such rules for boosting investment. We use a property-rights framework to study when this motivation is justifiable. The rule does not bind for all supply chains, as some (very-high-productivity) suppliers comply in an unconstrained way and some (very-low-productivity) suppliers do not comply. For those suppliers it affects, the rule both increases investments and induces excessive sourcing within the trading bloc. From a social standpoint, the best rule binds for relatively high-productivity suppliers, because the marginal net welfare gain from tightening it increases with productivity. Therefore, when industry productivity is high, a strict rule is socially desirable. In contrast, a lenient rule binds for relatively low-productivity suppliers and is more likely to be harmful. For output tariffs that are not too high, a sufficiently strict rule ensures welfare gains.

Is the WTO terminally ill? Threats to the international trading system

The international trading system is under threat. Many observers have already expressed serious concerns about the impact of Covid, the war in Ukraine, tensions over Taiwan and other natural and man-made disasters and their effects on the international trading system. Some even doubt its viability and chances of survival. The purpose of this paper is to assess the weight of those arguments. It is argued that the turmoil in global markets is, of course, a factor endangering the system, but the system is threatened even more by its own weaknesses. These are various imperfections in the international trade agreements in the WTO which are dividing the international community into separate groups. It is also shown that economic theory does not help us much to show the directions for policy makers to reach optimal trade agreements. It is argued that the splitting of countries into different negotiating and trading blocs is the optimal step under present conditions.

A Bibliometric Evaluation of Country Risk, Volatility Spillover and Equity market return of BIMSTEC Nation.

Economic globalization and economic regionalization are influenced by country risk, volatility spillovers, and equity market return. The aim of this study is to use bibliometric analytics approaches to evaluate reliable articles on the relationship between country risk, volatility spillovers, and the return of the Bimstec equities market. The present study reviews the peer-reviewed articles available in the Web of Science (WoS), database relating to 1129 publications for the period 1973-2022. The R software is used to graph the bibliographic documents. The following properties were observed during the bibliometric investigation: (1) The major studies investigate the impact of country risk, volatility spillovers, and stock market return on regional trading bloc members. (2) The main authors deal with different types of volatility spillover, different types of country risk, and different patterns of equity market return and their effects on the global economy and regional trade blocks; (3) the most recent trend topics are related to different methods for calculating the weightage of country risk, volatility spillovers, and equity market return of regional trading blocks such as Bimstec. Numerous studies on economic globalization and regional trading blocs have found considerable impact rates. It promotes commerce investment and technological exchange, and it contributes to the peace, progress, and prosperity of the shared region. Overall, this work lays the groundwork for future scientific investigations that will aid in the growth of this research field.

남미공동시장(MERCOSUR)과 한국의 교역구조에 관한 연구

Purpose - The purpose of this study is to analyze Korea’s trade relations centered on the MERCOSUR, a major economic integration in Latin America, and identify its problems and suggest measures that can be taken by the government and corporations to reinforce economic cooperation.
 Design/methodology/approach - To improve the level of contribution of the study, an empirical analysis is necessary. However, due to limited data access, the study will approach the topic of trade relations between Korea and the MERCOSUR with various statistics and literature.
 Findings - First, there is an urgent need for changes in import-export goods between Korea and the MERCOSUR, as trade is focused on specific items. Second, although foreign direct investment from Korea to the MERCOSUR is centered in manufacturing and mining industries, there should be different investment strategies by countries and industries. Third, it is necessary to reinforce commercial cooperation. Korea currently has Free Trade Agreements with Chile, Peru, and Columbia, but not with MERCOSUR. Therefore, Korea must take active measures to sign an TA with MERCOSUR, which has been put on hold.
 Research implications or Originality - Latin America has the most thriving market when it comes to Free Trade Agreements worldwide. MERCOSUR is a South American Trade Bloc established by the Treaty of Asunción in 1991 and Protocol of Ouro Preto in 1994. Its full members are Brazil, Argentina, Uruguay and Paraguay. However, there is still a lack of research on the MERCOSUR, and corporations that aim to enter the Latin American market face difficulties due to lack of information. By investigating MERCOSUR and its prospects and analyzing the trade relations with Korea, this study will provide strategic measures for corporations that wish to enter the Latin American market.

A critical minerals perspective on the emergence of geopolitical trade blocs

In an era when critical minerals have become the cornerstone of technological advancement and economic security, the evolution of geopolitical trading blocs signifies a transformative phase in international relations. This paper critically examines the evolving landscape of global trade, characterized by the stratification of nations into competing groupings. Through an extensive literature review, the study establishes the current academic discourse on the subject, setting the stage for a deeper analysis of the actual and potential fissures in the Western liberalist rules-based international trading system (RBITS) and the emergence of a ‘competing’ trading system. The rise of the BRICS+6 nations represents a formidable counterweight in global trade power, challenging as it does the strategic rationale underpinning the RBITS. In the wake of the January 2024 BRICS expansion, the central research question is how will the intense geopolitical concentration and competition between two trade groupings impact on the governance of critical mineral supply chains? These emerging rivalries will likely shape future international trade policy and stability in critical minerals markets.

COMPARATIVE ANALYSIS OF REGIONAL TRADE BLOCS

This research paper investigates the impact of regional trade blocs (RTBs) on global trade and economic growth, adopting a comparative perspective. Regional trade agreements (RTAs) have gained significant prominence in the global economy due to their role in promoting trade liberalization and economic integration among member nations. This study aims to assess the potential for multilateral liberalization within these blocs and examines how political and ideological differences influence the effectiveness of RTBs. Additionally, it explores the consequences of the proliferation of RTAs on international trade dynamics and their broader economic implications. The analysis begins by examining the effects of RTBs on global trade. The study compares the trade performance of RTB member countries with non-member countries to assess the extent to which RTBs contribute to trade expansion. Furthermore, the research investigates the impact of RTBs on economic growth. The economic integration fostered by RTBs can lead to increased investment flows, technology transfer, and productivity gains. It considers the potential spillover effects of RTBs on non-member countries, as increased regional integration may create both opportunities and challenges for economies outside the bloc. The analysis also delves into the complexities of multilateral liberalization within RTBs. While RTBs aim to promote trade liberalization among member countries, the presence of political and ideological differences can hinder the achievement of comprehensive agreements. The study explores the challenges faced by RTBs in reaching consensus on sensitive issues such as agriculture, intellectual property rights, and services trade. It examines the role of political dynamics and power asymmetries within RTBs in shaping the outcomes of negotiations.

Regional Factors Influencing Bilateral Trade Between Kenya and South Africa

Trade in the modern world has evolved due to the liberalization and integration of the world into one unit. This has led to the practice of trade in multilateral, regional, and bilateral frameworks where states advance their diplomatic interests through negotiations, networking, regulations, and participation. Foreign trade is influenced by key regional factors like comparative advantage, level of investment, and domestic absorption rate. The study investigated the regional factors influencing bilateral trade between Kenya and South Africa, which are among the top economies in Africa and control a significant GDP within their regional trading blocs. The two nations enjoy trade under various global and regional arrangements like the African Growth and Opportunity Act (AGOA), the African Union (AU), and the African Continental Free Trade Area (AfCFTA). Trade between Kenya and South Africa has been uneven for the last three decades, with South Africa reaping more from exports compared to Kenya. The objective of the study was to examine the regional factors influencing bilateral trade between Kenya and South Africa. The significance of the study was to add to the knowledge pool and guide policy formulation between the two states. The study focused on the nexus between regional factors and economic diplomacy between the two states from 1994 to 2023. The standard theory and Keynesian theory were used to inform the conceptual foundation for the study. The study adopted purposive sampling and simple random sampling techniques to draw a sample size of 333 participants from the study area (Republic of Kenya and South Africa High Commission in Kenya). Primary data from interviews and questionnaires and secondary data from internet materials, journal articles, and books were adopted. Data was analyzed using the Statistical Package for Social Sciences (SPSS) software, and results were presented thematically and through verbatim quotations. The findings were presented via frequency distribution tables and percentages. The study established that comparative advantage, level of investment, and domestic absorption rate were the key regional factors affecting bilateral trade between Kenya and South Africa. The study found that South Africa has a higher competitive advantage in international trade over Kenya, characterized by a low influence of comparative advantage, a low level of investment, and a high domestic consumption rate. The study recommended that Kenya place emphasis on addressing the key regional factors by leveraging endowment factors, establishing laws to attract more FDI, and increasing technical training to improve production and ensure surpluses for export.

Power by Proxy

Abstract Fifteen countries recently signed the Regional Comprehensive Economic Partnership (RCEP) and formed the world’s largest trade bloc between some of the globe’s largest and fastest-growing economies. Employing a text-as-data analysis, this article systematically compares the text of the RCEP to the previous agreements of its members to determine the sources of language in the RCEP and investigate why particular treaty text is replicated more frequently relative to others. The results indicate that language derived from the multiparty and multicontinental trade agreements of the United States, a state not involved in the RCEP negotiations, accounted for a disproportionate share of the finalized text. These findings highlight the temporal dimension of power asymmetries as well as the importance of treaty design itself in the diffusion of regulatory norms and suggest that specific trade agreements serve as reference points for subsequent agreements.

Natural resources extraction of RCEP trade bloc: Examining geopolitical risk and economic situation

Natural resource extraction is a critical driver of many countries' economic growth and development. Given the significance of resource extraction for RCEP countries, this study investigates the effects of natural resource rent on the international trade of RCEP members. We use energy efficiency, GDP and geopolitical risk as control variables. Resources extraction, geopolitical risk and economic situation are the key variables of interest. The findings of this study highlight the important role of natural resource rents, geopolitical risk, GDP, and energy efficiency in shaping international trade patterns within the RCEP trade bloc. The detrimental impact of oil rent on international trade has been justified by the results obtained from the quantile regression analysis for each quantile. The study emphasizes the importance of policymakers and businesses understanding the complex interactions between these factors and their implications for international trade. The study also provides relevant policy implications for RCEP economies following their resources sector, economic structure, and geopolitical risk.

Efforts to Increase the Competitiveness of Export Products in the Free Market in Islamic Economic Development

This research intends to increase the competitiveness of export products on the free market in Islamic economic development. This study uses a systematic literature review method. The data source for this research comes from journals and other literature related to direct marketing. The findings in this literature review study conclude that the realization of free trade tends to encourage each country to fully specialize in the production of goods that have a comparative advantage for that country. The readiness of a country in globalization depends on how the country encourages the products it produces to have a comparative advantage. With comparative advantage, competitive products will be produced in the global market. In addition, with the growth of world trade areas, which tend to form trading blocs in almost all continents, adding to the globalization of trade in the world today. Economic globalization is the expansion of global markets where global resources in production and marketing are no longer limited by geographic boundaries of countries. In fact, globalization covers a wider field, including the influence of politics, technology and culture. The role of the market becomes more important in creating economic conditions than the government. Countries can have a way that is considered most appropriate, but it is market policy that will be directly related to global markets. Companies and other forms of organization are no longer limited by national territory, the world has truly become one global "village".

Assessing the Effect of Joining the World Trade Organization on Trade Performance: A Study of CIS Countries

This research delves into the impact of World Trade Organization (WTO) membership on trade dynamics in the Commonwealth of Independent States (CIS) region, focusing on the potential augmentation or diversion of trade resulting from CIS countries’ WTO accession. The study context is grounded in the interplay between regionalism, represented by regional trade agreements and historical connections, and global integration facilitated by WTO membership. The study also scrutinizes the potentially complicating role of the Eurasian Economic Union (EAEU) regional bloc, referencing the ‘Spaghetti Bowl’ phenomenon of overlapping trade agreements. The gravity model of trade serves as a conceptual foundation to understand the effects of WTO membership and regional trade agreements on trade costs. Empirical results suggest that WTO membership has not enhanced trade for the CIS. Instances of trade within the CIS region where there is only one WTO member have resulted in a positive trend, even though there is no robust evidence that it is due to WTO membership. The EAEU enhances trade and serves as a trading bloc within the region. This study highlights that while the WTO strives to foster trade liberalization and growth, its effects can be region-specific and complex, as demonstrated by the CIS region’s experience. The research also hints at the importance of intra-regional trade and unique regional factors as critical determinants of trade patterns, which can enhance broader trade expansion and economic development.