In this article, we consider the formation of the Common Market of the Southern Cone (Mercosur) as the outcome of an integration process where its two largest member countries (Brazil and Argentina) pursue industrialization objectives. The article considers the effects of Mercosur in terms of the promotion of economic efficiency and in terms of the promotion of new inflows of foreign direct investment. The article highlights that economic asymmetries between the two largest member countries have been a major obstacle in fostering economic integration in the Southern Cone region.
- industrial policy
- preferential trade agreements
- trade diversion
ASJC Scopus subject areas
- Business and International Management
- Business, Management and Accounting (miscellaneous)