Economic Integration: Worldwide, Regional, Sectoral: by Professor Fritz Machlup (eds.)

By Professor Fritz Machlup (eds.)

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Additional info for Economic Integration: Worldwide, Regional, Sectoral: Proceedings of the Fourth Congress of the International Economic Association held in Budapest, Hungary

Sample text

Between 1959 and 1971, trade among the original member countries of the EEC (Belgium, France, Germany, Italy, Luxembourg, and the Netherlands) increased nearly sixfold, as against a fourfold increase in their total imports and exports. As a result, the share of intraEEC trade in the total rose from one-third in 1959 to one-half in 1971. The question arises of whether, and to what extent, the expansion of intra· EEC trade represents trade creation (the replacement of domestic by partnercountry sources of supply) or trade diversion (the replacement of foreign by partner-country sources) and how these changes in trade flows affect the welfare of member and nonmember countries.

The taking of such decisions in turn entails a diminution of the national sovereignty of the individual countries. s increase with their size and the homogeneity of the would-be partner countries. VL ECONOMIC UNION AND NATIONAL SOVEREIGNTY The issue of national sovereignty is put in an even sharper focus in the case of an economic union that involves, in addition to trade integration, the coordination of economic policy making. The co-ordination. of economic policies in turn requires political decisions that would necessitate establishing a common decision-making apparatus.

Discussion should mean a sequence of brief interventions, either reacting to views of a previous speaker or, after the issues on the agenda had been sufficiently covered, raising new points and inviting reactions by others. A good discussion is not a succession of independent speeches on a variety of loosely related or unrelated issues; it is, instead, a succession of interdependent responses on an issue which the chairman has ruled to be open for discussion. Participants in a discussion ought to strive for a topical and logical integration of all the points made in addressing a specified issue.

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