The paper "Bilateral Free Trade and Regional Trаding Blосs" is a good example of a finance and accounting coursework. Global development expansion in the recent past has led to increased international and foreign markets. As such, in a bid to increase shareholders values, organizations evolved from local to multinational status in the market. To this effect, the organizations have increasingly invested in the global market regardless of the geographical dispersion of the respective markets. The emergence of multinational organizations led to international trade concept. However, despite its merits, international trade faced a number of regulation and control challenges in diver's markets.
Therefore, international trade players resulted in the development of an international organ, the world trade organization, to regulate international trade (Alexander & Andenæ s, 2008). The WTO policy on trade ever since its inception has been free trade advocacy where the global markets allow for free entry and exit of international players with no discriminatory policies. Although the organization has achieved much in its effort to establish free international trade, the emergence of regional trading blocs has presented a new challenge to its success (Wild, Han & Wild, 2006).
Arguments have been developed that the regional blocs negate the free trade concept. This essay evaluates this argument and forms a conclusion if indeed the regional blocs deter free trade or not. Reasons to Disagree Regional blocs are trade partnerships developed by nations across the globe. In this case, the blocs are in most cases developed on a regional basis such as the Asian market bloc, the European Union, the BRICS (Brazil, Russia, India, China and South Africa) and the NAFTA (Northern America Free Trade Association) trade agreements.
All these blocs represent regional trade blocs. Collins (2013) argued that one common aspect in all these blocs is the enhancement of trade between the bloc partners. In this case, the trade agreements establishing the blocs have an objective of enhancing increased trade between the partners. In this case, the trading blocs seek to eliminate all trade barriers between them. Langenfeld and Nieberding (2005) argued on the concept of free trade area establishment. The authors argued that under a free trade agreement all barriers to the movement of goods and factors of production are eliminated.
Free movement of factors of production implies that labour, raw materials as well as other factors can be transferred seamlessly across the region. It is this transfer that forms the basis for free trade in the region. Deb and Basu (2012) sought to establish building issues that characterized free trade in the south Asian market. In this case, the authors sought to establish factors whose presence signified the enhancement of free trade. In its analysis, the study established that the presence of a free movement of the factors of production was an imperative component in the enhancement of free trade in the market.
Therefore, through the removal of factors of production movement barriers, the regional trading blocs facilitate increased free trade in the global market. Thus, instead of the allegation that regional trading blocs led to reduced free trade gains by WTO, it is apparent that the regional blocs facilitate increased international free trade concept attainment.
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