GEO-ECONOMIC COMPETITION AND TRADE BLOC FORMATION - UNITED-STATES, GERMAN, AND JAPANESE EXPORTS, 1968-1992

In the post-cold war world, geo-economic competition is thought to be replacing geopolitical competition as the focus of great power relatio ns. The cold war years corresponded to the period of U.S. hegemony in world trade and relations in the Western bloc. With the shrinking of t he power gap between the United States and the other two great trading states, Japan and West Germany, as well as increased competition for trade shares, a division of the world economy into trade blocs has bee n anticipated. An examination of export shares for the three great pow ers with 114 partners in the Fast quarter century, 1968 to 1992, indic ates there is not much evidence for the hypothesis of a world devolvin g into trade blocs. While regional links have intensified somewhat bet ween the United States and its neighbors in the Americas and between W est Germany and its European Union partners, Japan is broadening and d eepening its export linkages with extraregional partners. Fears of the formation of blocs in the world trading system are greatly exaggerate d.