Chapter 8: International Economics: Basic Theory and Core Institutions


Your staff begins the process of applying for membership in those international institutions. Next up: you have the opportunity to join a regional bloc with several neighboring countries. Do you want to push to join that bloc?

What do you do now?

Join the regional blocFavorable trade terms with your neighbors will bring goods and capital into Abkhazia without fully opening the economy to global markets, meaning that Abkhazian companies will still be relatively protected. This is a good middle measure for you, and will also improve relations with your neighboring countries.
Do not join the regional blocYou have committed to a protectionist path and should stick to it. A regional bloc is just a stepping stone to an open economy, and you need to focus on protecting Abkhazian companies.