The similarities between Poland and Argentina were striking. By the time the Soviet Union collapsed the two countries were beacons of reform in their regions. Each had a largely Roman Catholic population of about 36 million. Both were introducing free-market reforms. And after decades of authoritarian rule both were establishing democracies. But since then countries in Eastern Europe have been pulling ahead of their counterparts in Latin America mainly because of the different international economic integration schemes that are in place in each region: The European Union and NAFTA. In a new research paper Wharton management professor Gerald McDermott and two co-authors look at the impact of these trade agreements on developing nations.