What Is One Result Of The Agreement Being Made In This Excerpt
Trade agreements are now the most important mechanism for establishing stable relations between countries. More than ever since the end of the Second World War, the overwhelming majority of countries have recognized the crucial importance of market-oriented policies and trade for economic growth and the resulting improvement in living standards. The expansion of international trade and investment stimulates growth by exposing the industry to international competition and creating new market declines. Strengthening international economic relations has the added benefit of making armed conflicts between and between nations less likely. China`s closest neighbors, including South Korea, have seen China`s economic rise primarily as an opportunity to be seized, not a threat to be weighed against. It is only since 2006, when China became more competitive in third-country markets, that the economic impact of its rise has made South Koreans think; But while fears about the strategic impact of China`s rise have grown, concerns about China have not stopped the growth of bilateral trade and investment between China and South Korea. Even North Korea`s extreme economic dependence on Beijing did not stop Pyongyang`s leaders from testing a nuclear bomb in October 2006, despite Chinese objections. To the extent that growing economic interdependence has been accompanied by economic dependence on China, or to the extent that China has sought to use economic interdependence as a means of obtaining political leverage by demanding in return, both Koreas have sought to maintain their independence from Chinese political influence through forms of equilibrium behavior (for South Korea, Negotiate a free trade agreement with the United States; for North Korea, which seeks a strategic relationship with the United States through diplomatic normalization), this blocks the possibility that China could use its growing economic influence on the Korean Peninsula as political leverage. The financial landscape also varies from country to country. Although the sophistication of the Mauritian financial system is much closer to that of emerging markets and Botswana`s bond system is relatively more advanced and closer to that of the main MICs, other SMICs such as Lesotho and Swaziland are not as advanced in these areas. Nor are the constraints on reforming the political economy uniform between the minimum wages (see Chapter 6).
In addition, the dynamics for moving forward may be different. Some of the SMICs had relatively high per capita income growth rates at the time of obtaining TRIM status, and this momentum continued by being included in the ranks of middle-income countries (Botswana, Mauritius and Seychelles). Nevertheless, significant progress in trade liberalization in all areas is likely to still require the regular opening of comprehensive negotiations aimed at addressing a number of issues at the same time. .