Talk About It 1

Some people believe that the rise of regional trading blocs threatens free trade progress
made by the World Trade Organization (WTO).
8-1. What arguments can you present to counter this point of view?
- Though they have existing conflicting systems and interests, regional trading blocs
can actually bring progress to the trading industry. It facilitates the free flow of trade
and complemented the benefits of the multilateral trading system in which, it aims to
strengthen the global economy most especially in driving competitiveness from
developing countries.
8-2. Do you think regional trading blocs promote or undermine regional or global stability?
Explain.
- Regional trading blocs can promote global stability since it allows countries to give
access in developmental resources, such as technology, labor and natural resources
and more. Its aim is to achieve global efficiency in a geographical view.
Talk About It 2
Some governments across the Americas are strong supporters of the Free Trade Area of the
Americas (FTAA). This is true despite evidence that small companies typically have difficulty
competing against large multinationals when their nations take part in regional trading
blocs.
8-3. Do you think the FTAA would improve living standards in small countries (such as
Ecuador and Nicaragua) or benefit only the largest nations such as Canada and the United
States? Explain.
- The FTAA can improve the living standards in small countries in the reason that it
covers the largest free trade flow in America which stretches from North to South.
Small countries may steadily develop as goods would be readily available and more
resources would be easily gained.
8-4. What can national governments do to help small companies compete in large trading
blocs like the FTAA?
- National government may provide business incentives for MSMEs, lower tariffs,
and create more flexible trade agreements between countries.