International Political Economy: Multilateral Trade Analysis

This assignment delves into the realm of International Political Economy, analyzing the dynamics of multilateral trade agreements and their impact on various countries. It examines how countries leverage their economic size to gain advantages within these agreements, highlighting the disparities in benefits received by nations like the USA, Australia, and China compared to smaller economies. The analysis explores the logics behind these differing advantageous positions, attributing them to factors such as business size and capital strength. The assignment also considers the perspectives of key authors and their proposals regarding the effects of multilateral trade, including the role of political conditions and the potential for economic development. It raises critical questions about the equal distribution of revenue and the challenges faced by countries with smaller GDPs in the context of trade liberalization. The paper references key sources like Reuters and Weiss & Linda to support its arguments.

Running head: INETRNATIONAL POLITICAL ECONOMY
International Political Economy
Name of the Student
Name of the University
Author Note

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Table of Contents
Answer 1: The countries taking advantage of the ‘room to maneuver’...................................2
Answer 2: Logics behind dissimilar advantageous position of the countries...........................2
Answer 3: Significant feedbacks of the authors..........................................................................2
Answer 4: Identification of the key authors and their proposals..............................................3
Answer 5: Questions likely to appear..........................................................................................3

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Answer 1: The countries taking advantage of the ‘room to maneuver’
Multilateral trade treaty occurs when more than two countries involve in the business.
The objective of this treaty is to reduce the tariffs and trade barriers between the countries. This
agreement strives to provide equal opportunity in terms of ‘room to maneuver ‘to all signatories.
However, data reveal that the countries like Mozambique, Serbia, Ukraine and others fail to reap
the trade benefits. Their small size of the business is assumed to put them in a less advantageous
position compared to the large economies, such that, USA, Australia and China (Armstrong,
2015).
Answer 2: Logics behind dissimilar advantageous position of the countries
The countries having a relatively large size of businesses are reported to yield more
multilateral trade benefits. The colossal multinationals are able to take advantage as they are
accustomed with the functions of the international trade environment. Further, owing to having
insufficient capital strength, small economies often feel incompetent with respect to the
emerging global demand. Having been unable to maintain the quality of the products as per the
market requirements companies belongs to small countries cannot be able to participate in the
international trade.
Answer 3: Significant feedbacks of the authors
The concept of multilateral trade was developed with an aim to provide a better trade
environment for the international traders. All kinds of contracts related to this trade experience
detailed approval process. This negotiable activity is an arduous task in nature. Overall, the

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complex structure of this kind of treaty raises doubts about the poor performance of the small
GDP owned countries. Instead of that, international political condition is a key concern for all
the participants of the multilateral trade. The growing political disturbance between developed
and developing countries is considered as a serious constraint for all the business participants.
Answer 4: Identification of the key authors and their proposals
According to Weiss & Linda (2017), the aftermath effect of multilateral trade is not
promising in order to develop the economy. This trade policy, even fails to enhance the real per
capita income of the small economies. However, this trade policy is able to reduce domestic
protectionism of the developing nations. Another paper states that the multilateral trade
ultimately undermines the nation’s real capacity (Reuters, 2019). This results in the detrimental
impact on the workforce of the country. There are some countries often found to follow capital
intensive technology while the labor intensive technology is desirable for this country’s
economy. In this way, the country’s overall economic growth takes down turn due to the
government’s wrong trade policy.
Answer 5: Questions likely to appear
As per the study is concerned, this paper raises the following possible doubts.
1. Why the participants of the multilateral trade were not able to earn equal revenue even after
implementation of the considerable amount of negotiable policies from this trade liberalization
policy? What are the influencing forces that compel small economies to follow this trade
liberalization policy?

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2. Why multilateral trade policy liberalization is unable to yield a favorable environment that
will bring economic development for the less GDP owned countries?

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References
Reuters, ‘WTO opens way for Chinese sanctions against U.S. tariffs in
Obama-era dispute’
Reuters 17 July 2019, at:
https://www.reuters.com/article/us-usa-trade-chinawto/wto-opens-way-for-chinese-sanctions-
against-us-tariffs-in-obama-era-disputeidUSKCN1UB1W4
Weiss, Linda 2005: ‘Global Governance, National Strategies: How
Industrialized States
Make Room to Move under the WTO’. Review of International Political
Economy, 12(5),
723-749.