Several emerging market economies have experienced large and persistent trade deficits following the liberalization reforms of the late 80s and early 90s. The Argentine experience has endorsed the extent to which trade imbalances in the 1990s resulted from income and relative price movements were associated with structural changes from shifts in foreign trade elasticity during the reforms period. One of the studies on Latin American trade issues emphasizes that openness involves more than just trade liberalization. The increasing importance of international capital flows and especially foreign direct investment (FDI) seems to be another relevant component of outward oriented policies. This book will encompass these matters and bring light to the trade relations current status.
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