ABSTRACT
As international trade issues assume increasing levels of importance to the economic health of nations, agreements on tariffs and trade are recognized as being vital to the economic strategies of countries from Latin America to Eastern Europe. International agreements will in many ways shape the ‘‘new world order’’ in the post-Cold War environment as borders become more abstract and transnational trade becomes the modus operandi for commercial activity. The North American Free Trade Agreement (NAFTA), for instance, produced a combined market of 360 million people among the three participating countries (U.S. Department of Commerce, 1992). Changing market conditions such as this create new opportunities for subnational policymakers to consider as part of their economic development strategies. Because of their location, state and local governments adjacent to international boundaries will find themselves in an enviable position to pursue activities vital to international trade and, in the process, have a positive impact on economic development on both sides of a border.
