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- Title
THE IMPACT THE COMPETITION POLICY HAS ON THE LIBERALISATION OF INTERANTIONAL TRADE. CASE STUDY: THE CARTEL.
- Authors
Berinde, Mihai; Fora, Andreea-Florina
- Abstract
The liberalization of international trade is the key when we talk about globalization from an economic aspect, because only when there will be a single global market can we talk about abundance as to what economic globalization is concerned. It is a known fact that market economies can work in free competition conditions. Taking into account the present tendencies of international trade, a decisive role is played by competition authorities. The policy in this field and the commercial policies play complementary roles, because in the absence of one of the two policies, we cannot see economic development and growth. In order to benefit from the full advantages of a free trade, companies must respect the laws of competition. In this context, in this paper, we proposed to study the way in which the existence of a cartel on a certain market can cancel the positive effects of international trade. The working hypothesis from which we started in this study was the following: identifying a cartel that functioned on the European market before and after the Uruguay Round, in order to study the negative effects that this anti-competition practice had. The Uruguay negotiation Round has been chosen, because the best results concerning the liberalization of international trade have been achieved in it. The cartel case was not chosen at random; we have searched to find one that was active in a field which got significant customs tax reductions in the Uruguay Round. We have decided to analyze the impact which a cartel had in the field of industrial products. Following our study, we have managed to empirically demonstrate the way in which a cartel can cancel the benefits of international trade liberalization. The analysis of the way in which the Industrial Tubes cartel acted on the EU market, as well as the analysis of the indicators that led to the undisputable conclusion that this cartel case canceled the positive effects which should have been felt on the European market after the Uruguay Round negotiations. We need to admit and to highlight the very important role that is played by competition policies, in the context of implementing liberalization policies for international trade.
- Subjects
EUROPE; ECONOMIC competition; INTERNATIONAL trade; ECONOMIC globalization; FINANCIAL liberalization; URUGUAYAN economy; ECONOMICS
- Publication
Annals of the University of Oradea, Economic Science Series, 2015, Vol 24, p39
- ISSN
1222-569X
- Publication type
Case Study