The Rise Of International Trade

1283 Words Oct 21st, 2015 6 Pages
The rise of international trade has led to the erosion of physical barriers as it has given way to instruments such as globalization. As a result of increase cooperation amongst trading partners has been made possible through the rising amount of trade agreements. For example, bilateral trade agreements have grown considerably in popularity as, most of present day countries have entered into at least a bilateral or plurilateral trade agreements if not both. The lack of a bilateral trade agreement between the United States and Brazil, the two largest economies in the western hemisphere, derives from personal motivations, political setting and relations, as well as the overall economic development of each country. Literature on trade agreements, not specifically on the relation between those two countries, can be divided into three schools of thoughts.
Literature on the first category takes a motivational approach to explain trade agreements, emphasizing countries’ interests behind their settlement. Secondly, the literature focuses on the political settings and relations affecting trade agreements, which include domestic politics and the involvement of a country in other trade agreements. Lastly, the literature discusses the level of economic development of the countries involved and its implications to trade agreements. Regarding the motives behind a country’s participation on a trade agreement, this first school of thought tries to explain what influences countries…

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