Economic regionalism can lead to protectionism and undermine global trade liberalization, as it involves countries forming agreements and alliances within specific regions that prioritize the interests of the member countries over those of non-member countries. This can result in trade diversion and discrimination against non-member countries, which can harm global trade overall.

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Economic Regionalism

Question 42

Multiple Choice

Economic regionalism

A) is not regulated by GATT.
B) may lead to greater protectionism and undermine global trade liberalization.
C) will undoubtedly increase global trade.
D) will certainly lessen American economic power.

Correct Answer: