The world has been changing very fast and is having no borders in terms of economies. This is helping people as development in one area is helping people in all areas. This is putting to an end to the belief prevalent in the 19th century that when the interests of individual states were looked after, then the entire society will progress. This is now expected to be covered through mutual cooperation. This quality of mutualism can be seen clearly when the state owned enterprises are being privatized, the streamlining of business is taking place and there being many mergers and acquisitions. The joining up of businesses makes it clear that competition is now a choice that the companies indulge in as and when they desire. The companies are not in a position purely on competition to set the prices that they would want. (Santis, 1999) .

             The process has led to a rapid increase in regional trade agreements all over the world as is the Southern Common Market or MERCOSUR. The numbers have increased sharply over the last few years and there have been as many as 33 new arrangements that started between 1990 and 1994. The beginning of these arrangements has led to a lot of arguments between economists, political parties and special interest groups. It may be seen that these arrangements are regularly being made among countries that are geographic neighbors and these arrangements end up in the trade between these neighbors increase at a much faster rate than the annual rates of increase of world trade, and this has been happening from 1975. There are some suggestions that the increase in trade among neighbors often come from a low distance for trade and political-cultural similarities between neighbors. This increase in trade has also happened among the MERCOSUR countries. That started only after they gave up their inward looking policies pursued during the 1960s and 1970s and changing over to a freer rate from 1980s.