ABSTRACT
This chapter analyzes two ideal-types —weak and open regionalism and strong and closed integration. Regional organization is intimately linked with the incentives of the governments who lead their states into the modes of organization. Comparing regional regimes, one finds that they do not display similar differences in influence among their members. True regional economic integration between the economies in trading blocs will no doubt proceed with increasing trade and foreign direct investments. The NAFTA trading block was set up with a minimum amount of regional organization in order to make sure that the terms of the agreement were respected and unintended dysfunctional outcomes minimized. The pooling of country resources to set up regional organizations within a public law framework is hardly a new concept. Regional organization as a mechanism of collaboration among states adheres to the logic of economic organization theory.
