We examine the roles of regional trade agreements (RTAs) not only in regionalization processes but also in the globalization process. Results confirm that a country can noticeably increase directional trade, particularly exports, through diplomatic relations as well as through membership

While the effects of cultural disparity and common institutional foundations on international trade and foreign direct investment (FDI) have been much analyzed, little analysis of languages' transaction costs has been done in either the international relations or international business...