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Unilateralism In A Multilateral World

In: THE FLOATING WORLD Issues in International Trade Theory

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  • Wilfred J. Ethier

Abstract

This paper addresses the interplay between unilateralism and multilateralism. I describe their stylised facts and present a simple, multi-country model with high initial tariffs and features that have always been of paramount concern to policy makers, and allow governments to negotiate multilateral agreements. I then find a role for a system with features remarkably similar to contemporary unilateralism. The relationships between multilateralism and unilateralism are subtle: Unilateralism has the properties it has because the world is multilateral (the insurance triangle); useful unilateralism requires a multilateral component resulting from a compatibility problem between those who negotiate multilaterally and those who establish unilateralism…

Suggested Citation

  • Wilfred J. Ethier, 2014. "Unilateralism In A Multilateral World," World Scientific Book Chapters, in: THE FLOATING WORLD Issues in International Trade Theory, chapter 12, pages 241-267, World Scientific Publishing Co. Pte. Ltd..
    • Handle: RePEc:wsi:wschap:9789814590327_0012
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