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CHAPTERII
TheIncreasingImportance
ofBilateralAgreements
intheForeignTradePolicy
1.Introduction
Internationaltradeduringtheriseofglobalsupplychainsinterfaceswith
manyotherpolicyareas,suchasmacroeconomicpolicy,intellectualproperty,
environmentalprotection,healthandemployment.Insomeofthesepolicyareas,
therearewell-developedmultilateralregimes,whileinotherareasmultilateral
cooperationismoreincipientandinstitutionalframeworksarelessdeveloped.The
fragmented,decentralizedandnon-hierarchicalnatureoftheinternationaltrade
systemmakesthepursuitofcoherenceparticularlychallenging,fragmentation
hastheadvantageofallowingforexperimentationasdifferentpoliciescanbe
testedatthebilateral,regionalandmultilaterallevels.Anumberofinstitutions
andpolicyprocessesareinplacetoenforcebettersurveillanceofexchangerates
andreduceglobalimbalances.However,inthetimeoftheriseofglobalsupply
chainsthequestionarisesastowhetherthesewillbeusedtosetupamore
cooperativesystemofexchangeratesattheinternationallevel.Thechallengeof
securingagreementismademoreacutebytheneedtoresolvedifficultquestions
duringtheriseofglobalsupplychainsabouttheeffectivenessofdifferent
policiesandtheirimpactontradingpartners,theanswerstowhichdependon
anumberoffactors,suchasthetechnologyinvolved,thecharacteristicsofthe
sectorandthemarketsatissue.
Methodologicallyinclusiveaccountbreaksnewgroundinthenewpolitical
economymodelsoncontemporaryforeigntradepolicy.Thearticlepresentsnew
tendenciesintheinternationalbusiness,theincreasingimportanceofbilateral
agreementsintheforeigntradepolicy.Thegeneraltheoreticalapproachwill
beofbroadinteresttoeconomistsinterestedininternationalandinstitutional
questionsaswellastopoliticalscientists.Themainmethodappliedinthis
researchwasamethodofscientificstudy.Itwasusedtheinstitutionalmethod,