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The Role of Regional Trade Agreements’ Conditions in Supply Chains Strategies

Student: Dunaeva Svetlana

Supervisor: Olga V. Biryukova

Faculty: Faculty of World Economy and International Affairs

Educational Programme: World Economy (Master)

Final Grade: 9

Year of Graduation: 2016

International Supply Chain (SC) development based on reduction of trade barriers and strengthening global competition leads to new forms of interaction in changing institutional environment. Growth of claimed Regional Trade Agreements (RTAs) from 1990 shows strengthening regional economic integration and growth of economic interdependence. RTAs conditions suggest not only regulations of trading goods, but also competition, entrance to a market and industrial policy issues. Creation of preferential regime in frame of RTA created conditions for more beneficial partnership for member countries and exclude those benefits from non-memebers, creating additional barriers for partnership with them. Being oriented on the best suited conditions for business development companies elaborate their strategies of SC management based on RTAs' conditions. At the same time, economic interest in development of SC with involvement of particular countries can launch negotiating process of RTA's creation. This paper presents an overview of theoretical literature about RTAs and international SC. There is an analysis of world economy tendencies relating to strategies of SC in conditions of RTAs' proliferation. Case of Russian economy is presented and ways of further international integration through SCs and RTAs are shown. As a result of the research it is claimed that RTAs lead to the growth of international trade in frame of SCs, but conditions of RTAs determine the extent of the raise.

Full text (added May 15, 2016)

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