An assessment of the extent to which increased global and regional integration has changed the functioning of the world economy. With contributions from both academics and professionals, it analyses the implications for global trade, relocation of production, structural changes and the international transmission of shocks.

Reproduces from their original publication 30 studies that work within a theory of economic integration that assumes a world where governments strive to maximize national income, which not all theories do. They do not include examples of the current research on the political economy of integration. The discussions are cast in terms of trade of goods, but the ideas should transfer easily to trade in services. They cover trade diversion and creations and the general theory of second best, tariff changes and welfare, optimum tariffs and retaliation, tariff reform, integration and national welfare, customs union welfare, world welfare, customs unions versus free trade areas, integration and sidepayments, and integration and growth. The topics include customs union from a single-country viewpoint, trade and welfare in general equilibrium, a theory of piecemeal policy, inter- commodity substitution with constant real prices, delegation games in customs unions, the move toward free trade zones, and measurable dynamic gains from trade. There is no subject index. Annotation copyrighted by Book News, Inc., Portland, OR