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QUESTION 1

‘The structure, objectives, sectoral coverage, and membership of Regional Integration Agreements (RIAs) can substantially influence their potential economic gains and losses. Both economic theory as well as a vast body of empirical evidence point towards the superiority of full multilateral (rather than regional) free trade as the best strategy for a government to maximize national welfare. RIAs are a second-best arrangement, and are at most a step towards the ideal of multilateral trade'. Discuss the above statement in light of the benefits and costs of RIAs.

QUESTION 2

It may be argued that Globalisation increases poverty and inequality.

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