The Korea- US Free Trade Agreement

Read the case study “The Korea- US Free Trade Agreement” that I have attached below then answer the following questions:

1. Is the World Trade Organization (WTO) becoming less important and are regional and bilateral agreements the wave of the future? Are there advantages of a bilateral agreement such as KORUS over WTO agreements?

2. While trade theories generally support free trade, political realities ensure that trade barriers still exist. How does KORUS address the realities of international trade?

3. Some argue that regional or bilateral trade agreements are building blocks for global trade agreements. Others argue that such “Balkanization” of world trade represents stumbling blocks to international trade. Is KORUS a building block or a stumbling block?

4. How do formal institutions facilitate or impede trade and investment? Give examples from KORUS.

5. Go online and read President Obama’s National Export Initiative. To what extent did KORUS contribute to the main goal of this initiative?