Trade relations between the European economic community and Mediterranean countries

Abstract

The subject dealt with in this thesis is somewhat wider than just trade relations. Although the basic element discussed is trade, relations between countries are more than just commercial ones. Trade flows are in fact influenced by level of economic development, cultural links between nations and politic al decisions as well as by the investment decisions of transnational corporations. These forces could reinforce or disturb comparative advantage patterns. Moreover in a dynamic world we should allow for changes in this set up of forces which would influence the structure of international trade. Moreover trade should be looked at as a means to an end. The objective in engaging in trade is often that of promoting dev elopuent and growth with the final objective of improving welfare. But trade is also often used by nations to exercise international power and by companies to minimize their profits or sales or improve their marketing strategy.