ABSTRACT
The second half of the twentieth century has seen a remarkable increase in integration affecting all parts of the global economy, including much of the developing world. The exchanges that result in integration of economies are triggered by similar economic stimuli as those which trigger exchanges within economies, namely declines in transactions costs. These are associated both with natural and man-made barriers. With regard to the former, there have been declines in the costs of transportation and even more so in the costs of communication which have proved to be an enormous stimulus to globalization. Declines in man-made barriers have been no less dramatic, as governments have reduced or removed impediments to cross-border commerce. This has taken place unilaterally (i.e. unreciprocated actions by a single trading nation), multilaterally (i.e. reciprocated reductions in trade barriers which extend to all trading partners) and minilaterally (i.e. reciprocated reductions in trading barriers which extend to some subset of trading partners). All three forms of liberalization have been in evidence over the post-war period.
