Discuss the interplay of multilateral trade regimes and their effect on Indian economy. Is the world today moving towards neo-mercantilism? Highlight the recent trends in this regard.

11/18/2016| Views(355 ) | Writing Structure |Qchat

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Context: Geo-political economic relationships with special reference to mercantilism

Core answer:  a continuous flux in economic relationships will always remain the core of world trade. The balance of this will be determined by the power equations which can change based on the following fundamentals;
equation 1- developed vs developing swots ( international tie ups)
equation 2- core engines of growth within capitalism oriented ,profit oriented business cycles ( regional tie ups)
These equations counterbalance each other thus avoiding neo-mercantilism in absolute sense while always opening up new opportunities for exploitation of trade scenario by a capable entrepreneur within the market or the State.
Recent trends: Since developing nations have stalled negotiations on the Doha Round at WTO, US has established new regional agreements such as TIPP and TPP to exclude the objecting countries such as India etc.

These new regional trade agreements would result in trade diversion and thus India needs to enhance its engagement with other nations to secure markets for its exports and source raw materials to feed its domestic economy

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