When economic coordination between trading partners continues,leading trading nations will _____.

Question

Quizplus · Accepted Answer

Economic coordination between trading partners often involves the establishment of common rules and regulations, harmonization of policies and standards, and the creation of institutions for dispute settlement and policy coordination. As such, countries may need to cede some of their decision-making powers and sovereignty to these institutions, especially if they are binding and enforceable. For example, the European Union has a centralized monetary policy, a common trade policy, and a court system that can overrule national laws. Similarly, NAFTA and TPP establish joint committees and procedures for resolving disputes between member states. Thus, continued economic integration may entail a tradeoff between greater economic gains from specialization and trade and some loss of political autonomy. The other answer choices are not accurate or complete. Increased competitiveness is not the only or automatic outcome of economic coordination, as some countries may still resort to protectionism, subsidies, or intellectual property rights to gain advantages. The exploitation and devaluation of currencies is not a legitimate or desirable policy option under international law or ethics, as it can cause inflation, trade imbalances, and financial instability. Compromising the WTO charter is also not a likely or desirable outcome, as it is meant to promote open, rules-based, and predictable international trade.

When Economic Coordination Between Trading Partners Continues,leading Trading Nations Will