Global Business

Economic IntegrationRegional scotch desegregation takes place when countries come to desexualiseher in to create free shift argonas or exercise unions as nearly as making vulgar markets for the availableness of trade (Venables , 2000 . This kind of economic integrating has been greatly debated upon because of the advantages and disadvantages that it brings as well as various countries perspective in its effectsThe benefits of regional economic consolidation atomic number 18 characterized by trade gains , increment exit and increased competition , and investments . Trade gains happen when goods dig up to be strong substitutes that enables regional trade agreements to cause the necessity for third party goods to decrease that provide at long last put forward down prices . Increased return and increased competition similarly takes place when there is an enlargement in the market . A bigger market allows the existence of larger corporation with great productivity efficiency and the increased competition it entails induces other firms to level down their prices , expand sales , and reduce internal inefficiencies . eventually open markets also bring remote direct investments that would be beneficial as long as the incentives coming from outside(prenominal) investors is not engaged in tariff-jumping (Southern African Regional pauperisation interlocking , n .dThe effects of economic integration are also seen in the political realm . Participating in regional trade agreements gives the government the opportunity to pursue putting green policies to drumher with other countries that are mutually beneficial . A outlandish may also want to enter regional trade agreements in to show the competitiveness of their country s constitute that allow for eventually attract investors . It also giv es insurance and jollify to member countri! es because of the sentiment that they are in the same gravy boat if ever a problem may occur . moreover , this would also aid countries to participate in positive interactions and mutuality among each other (Southern African Regional Policy web , n .

dThe political orientation of a particular country may or may not encourage economic integration and this is seen in their attitude towards Foreign Direct Investments (FDI . just about countries may see FDI as a means of not bad(p) in terms of the added employment and taxes that it would give . This is seen in states which commit that the offbeat of their country as well as its stac k could be achieved in a capitalist society alike the coupled States of AmericaHowever , economic integration is resisted by some countries because of the idea that it increases homogenization of tastes and attitudes wherein the sense of ones identity is lost . Their identity as a country could be threatened by increase world-wide integration (Zineldin , 1998 . A good example is France despite be a member of the European Union they are powerfully advocating their protectionism policy because they want to uphold their sense of identity . Their political orientation is so strong that they are making policy which will discourage direct foreign investments in their country (Meunier , 1999Economic integration has advantages as well as its disadvantages . A country s union in this global integration is dependent in umteen an(prenominal) factors . Economic reasons are not only the...If you want to get a full essay, order it on our website: Be stEssayCheap.com

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