Regionalization and Globalization: are Regional Blocs and Regional Agreements Obstacles to Globalization?

Abstract

Countries open their borders, that means lower their tariffs and allow foreign investors to come in. As a result, a global market emerges. Nevertheless, we can clearly assert that this global market, without any border does not exist yet. On the contrary many regional blocs are being formed. The North American Free Trade Agreement and the European Union are examples of huge and powerful regional trading blocs. They are ambiguous objects in-between liberalization and protection.