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Abstract This paper reviews several key implications of international investment and global supply chain fragmentation for the multilateral trading system. Based on existing economic research, I identify a two-fold challenge for policy makers: first, to leverage the trade-liberalizing potential of global fragmentation at the multilateral level; and, second, to counter the potential for opportunistic manipulation of behind-the-border policy instruments.
Emily J. Blanchard (Thu,) studied this question.
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