...Economic Integration, according to Investopedia online, is, “an economic arrangement between different regions marked by the reduction or elimination of trade barriers and the coordination of monetary and fiscal policies. The aim of economic integration is to reduce costs for both consumers and producers, as well as to increase trade between the countries taking part in the agreement.” According to Norman Girwan, in his paper entitled, ‘Caricom’s Elusive Quest For Economic Integration,’ the Caribbean needed to integrate for similar reasons. Girwan states that the move toward such integration was driven by the need to mitigate against the constraints of small size on development, as well as there were other non-eceonomic objectives. These included “attaining national independence, sharing the costs of common services, pooling bargaining power in international environment and instituting a common West Indian identity.” Girwan continues by stating emphatically that “economic integration is still a work in progress for the Caribbean peoples; and what has been accomplished so far has not impacted significantly on regional economic development.” He attests that “this could be due to faulty implementation of agreed integration schemes, or to inappropriate design of the schemes themselves, or to inherent limits in the capacity of economic integration per se to drive development in these economies.” In a similar manner, Mehmet Ekizoglu, in his paper Mercosur, It’s History, Institutions...
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...• no. 2/2010 REGIONAL ECONOMIC INTEGRATION IN ASIA: THE TRACK RECORD AND PROSPECTS By Razeen Sally Razeen Sally (razeen.sally@ecipe.org) is Director of ECIPE and on the faculty of the London School of Economics www.ecipe.org info@ecipe.org Rue Belliard 4-6, 1040 Brussels, Belgium Phone +32 (0)2 289 1350 ECIPE OCCASIONAL PAPER ExECuTIvE SuMMARy This is the season for regional-integration initiatives in Asia. There is talk of region-wide FTAs, and there are east-Asian initiatives on financial and monetary cooperation. But grand visions for Asian regional blocs are not achievable. Regional economic integration is most developed in east Asia, but only because of manufacturing supply chains linked to global markets. South Asia is the most malintegrated region in the world. And east and south Asia are much less integrated in finance than they are in trade and FDI – due to highly restrictive national policies governing financial markets. Asia’s existing FTAs are “trade light”. They are largely limited to tariff cuts, but have barely tackled non-tariff regulatory barriers in goods, services and investment, and are bedevilled by complex rules of origin requirements. An APEC FTA initiative has gone nowhere – entirely predictable given such a large, heterogeneous grouping. An east-Asian or a pan-Asian FTA, by discriminating against third countries, would compromise regional production networks linked to global supply chains. Moreover, huge economic gaps and enduring political...
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...national economics, the relationship between economic, political and social outcomes along with the interaction of nations through multilateral agreements. This paper explores the types and levels of economic integration and in particular the integration of the US with other markets. Focusing on trade through the NAFTA, the advantages that TPP and T-TIP could offer and the beginning of a fruitful partnership with Africa through the AGOA. Economic integration is an arrangement between different regions marked by a reduction or elimination of trade barriers and coordination of monetary and fiscal policies. There are various economic and political reasons as to why nations would want to pursue economic integration. Removing trade barriers comes with costs and benefits, depending on the degree of integration and the level of cooperation between member regions. Integration is believed to lead to lower prices for consumers and producers, thus causing the volume of trade to increase. However for nations outside integration agreements, barriers to trade can be created, as they may not be able to compete with preferred trading partners. When economies are strong, integration has benefits for all the members and each union can experience certain economic growth. The same holds true of economic downturns, if one member of a trade agreement begins to fall, their economic problems may spread. Growing nations are usually particularly eager to engage in economic integration as trade...
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...Economic Integration The concept of “Economic Integration” has been growing in significance for the past 50 years and was established by economists who investigated the early attempts of European countries to combine separate economies into larger economic regions.18 More specifically, economic integration—also called “regional integration”—refers to the discriminate reduction or elimination of trade barriers among participating nations. This also implies the establishment of some form of cooperation and coordination among participants, which will depend on the degree of economic integration that ranges from free-trade areas to an economic and monetary union. Integration among countries in a geographical region to reduce, and ultimately remove, tariff and non-tariff barriers to the free flow of goods, services, and factors of production among each other. For examples: EU (European Union), NAFTA (North American Free Trade Agreement), APEC (Asia Pacific Economic Cooperation) Level of economic integration: The levels of economic integration divided into five different levels and they are shown in figure 1.0. The first one is the Free Trade Area, Custom Union, Economic Union, Monetary Union and then the political union. These five levels are inter- linked with each other; first we have to have the come up with the identification of the free trade area among the participant. Than to ensure the exchange of the goods among the participant a custom union will be required. This custom...
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...the different economic integration and how each form affects international trade? Introduction Definition of economic integration: International trade is the exchange of capital, goods, and services across international borders or territories. In most countries, such trade represents a significant share of gross domestic product (GDP). While international trade has been present throughout much of history (see Silk Road, Amber Road), it’s economic, social, and political importance has been on the rise in recent centuries. It is the presupposition of international trade that a sufficient level of geopolitical peace and stability are prevailing in order to allow for the peaceful exchange of trade and commerce to take place between nations. Economic integration is the unification of economic policies between different states through the partial or full abolition of tariff and non-tariff restrictions on trade taking place among them prior to their integration. This is meant in turn to lead to lower prices for distributors and consumers with the goal of increasing the combined economic productivity of the states. Economic integration refers to the coordination of national economic policies as a means of boosting international trade, market activity and general cooperation among economies. Formal international economic unions are a recent phenomenon, but former International Monetary Fund economic counselor Michael Mussa traces the roots of global economic integration to the medieval...
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...Business, Diplomacy and Politics: American and European Region. Febryan Rivaldo Cliff Pelleng IR Diplomacy 2 016201400060 1. Economic Integration a. Definition Based on some reliable source, Economic integration is an economic arrangement between different regions marked by the reduction or elimination of trade barriers and the coordination of monetary and fiscal policies. Well basically in my own perspective, Economic Integration is a process of agreement in which two or even more parties, in this case country states, agreed to reduce or remove a trade barriers for the advantages of both parties. Economic Integration is often has a specific motives that drive, the driven parties to create one. Like for an example the Regionalism...
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...Evaluation of the Success of Economic Integration Movement in the Caribbean A clear judgment of the success of economic integration in the Caribbean can be highlighted by the optimism of the positive outcomes of the varying levels of the Caribbean’s economic integration. These include: Common Trade Policy and Strategy One of the strengths of the Caribbean Single Market Economy is its aim towards embracing a common trade policy. This is expected to emanate from a unified approach, some level of substantial advantage. These include increased negotiating capacity as well as reduced costs at a national level. This is as result of cost sharing, greater bargaining power from unanimity on trade issues greater ease in cooperating with other countries and regions. The Caribbean Single Market Economy offers several important strengths which can enhance regional economic performance. Among these are the implementations of a common trade strategy. Economic, Fiscal, Monetary and other Policy Harmonization It is envisaged that member countries will harmonize taxation regimes and also pursue fiscal policy integration as in the European Union. Monetary policy harmonization envisages the coordination of exchange rate, interest rate, and commercial banking and securities policies with the intention eventually of having a single currency, a Caribbean Central Bank and a regional stock exchange. In addition, there are other areas of functional cooperation that include harmonization of policy...
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...RETHINKING THE (EUROPEAN) FOUNDATIONS OF SUB-SAHARAN AFRICAN REGIONAL ECONOMIC INTEGRATION: A POLITICAL ECONOMY ESSAY by Peter Draper Research area: African Economic Outlook September 2010 Working Paper No. 293 Rethinking the (European) Foundations of Sub-Saharan African Regional Economic Integration: A Political Economy Essay DEV/DOC(2010)10 2 © OECD 2010 DEVELOPMENT CENTRE WORKING PAPERS This series of working papers is intended to disseminate the Development Centre’s research findings rapidly among specialists in the field concerned. These papers are generally available in the original English or French, with a summary in the other language. Comments on this paper would be welcome and should be sent to the OECD Development Centre, 2 rue André Pascal, 75775 PARIS CEDEX 16, France; or to dev.contact@oecd.org. Documents may be downloaded from: http://www.oecd.org/dev/wp or obtained via e-mail (dev.contact@oecd.org). THE OPINIONS EXPRESSED AND ARGUMENTS EMPLOYED IN THIS DOCUMENT ARE THE SOLE RESPONSIBILITY OF THE AUTHOR AND DO NOT NECESSARILY REFLECT THOSE OF THE OECD OR OF THE GOVERNMENTS OF ITS MEMBER COUNTRIES ©OECD (2010) Applications for permission to reproduce or translate all or part of this document should be sent to rights@oecd.org CENTRE DE DÉVELOPPEMENT DOCUMENTS DE TRAVAIL Cette série de documents de travail a pour but de diffuser rapidement auprès des spécialistes dans les domaines concernés les résultats des travaux de recherche du Centre...
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...With the variety of counties’ needs, the lack of economy in some countries and the importance of trade, some countries made an agreement named by MERCOSUR to coordinate their economic policies to gain benefits which are not possible otherwise. The agreement was signed in March 1991, among the following countries: Argentina, Brazil, Paraguay and Uruguay which was updated in 1994. The agreement main aim is to promote the free-trade and ease the movement of goods and services as well as currency. The MERCOSUR organization is considered as the 4th largest economy in the world coming after EU, NFTA and Japan, with GDP of $ 2.895 billion. The MERCOSUR organization strengthens the economic structure by providing extra policy tool to fulfill and realize the desired target as well as helping its members to compete for attracting the foreign direct investment which has a potential effect in economy and mainly helps in developing the infrastructure of the country. The organization plays also an important role in empowering the diplomatic relationship among the organization members, since the members have agreed to sign this agreement that means also they have made a custom union among themselves which will help to increase the exports and imports of the country due to the common external tariff. The agreement helped the MERCOSUR organization members to recover impressively from the financial crisis especially in Argentina which made a growth rate of 9.2 and currency reserves, the bank sector...
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...Gillian Louise Griffin 110355575 EU Integration: Question two: Choose an EU policy and explain the justification for its operation at EU level and its impact on a country of your choice. To begin, the EU Policy that I have chosen is the Common Agricultural Policy (CAP), which was established by the European Commission in 1960 but it wasn’t until 1962 that it actually came into effect. Within this essay I am going to look at the justification of the policy’s operation at an EU level and its impact on Ireland over the last few decades. This policy was a necessity to EU integration, as agriculture is one of the single biggest economic sectors. The Common Agricultural Policy is viewed as a partnership between Europe and its farming community. The policy has gone through many modifications and reforms since its creation and it continuing to change in the present day. The Common Agricultural Policy was established as a policy that would enhance the social structure of agriculture in Europe while preserving the environment and the safety and quality of the goods that famers were producing. CAP maintains commodity price levels and subsidises production within EU Member States. Many different types of mechanisms are used to achieve this, such as, import quotas and levies as well as internal intervention prices, which serve as a floor for market prices. In addition to this, there are also production quotas. These are in place to avoid the over production of foods that draw in financial...
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...IMPEDIMENTS OF ECONOMIC INTEGRATION IN AFRICAN ECONOMIES NARKMANEE THITIKARN 20TH MARCH, 2013 THE IMPEDIMENTS OF ECONOMIC INTEGRATION IN AFRICAN ECONOMIES Introduction Economic integration is an economic agreement between regions characterized by removal or reduction or barriers to trade and harmonization of fiscal and monetary policies. The main aim of economic integration is not only to reduce costs for producers and consumers but also to increase the volume of trade among the countries in question. Forms of Economic Integration The following are the common forms of economic integration; Preferential Tariffs In this form of integration, the parties involved levy lower rates of duty on goods imported from member countries and maintain relatively high tariffs to imports from other countries. Free trade associations Here, the member states levy no duty on imports from other member countries. Member states may charge different duty on its imports from other countries. Custom Union In custom union, free trade among the member states is protected by a unified schedule of custom duties levied on imports from other countries. In addition, if there is free mobility of both labor and capital between member states, the integration is referred to as common market. Economic Union This is integration where members states agree to harmonize their economic policies. Total economic integration In this form of integration, there is a pursuit of a common economic policy...
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...I. LEVELS OF ECONOMIC INTEGRATION A. THE FREE TRADE AREA—ALL BARRIERS TO TRADE AMONG MEMBER COUNTRIES ARE REMOVED, BUT MEMBERS MAY DECIDE THEIR OWN TRADE POLICIES TOWARD NONMEMBERS B. The Customs Union—Free Trade Area plus a common trade policy toward nonmembers C. The Common Market—Customs Union plus free flow of labor, capital, and technology among members (factor mobility) D. The Economic Union—Common Market plus integration of economic policies such as monetary policies, taxation, government spending, and a common currency II. Arguments Surrounding Economic Integration A. Trade Creation and Trade Diversion 1. Trade creation—increased exports by new member to other members resulting from membership 2. Trade diversion—decreased exports to members of the economic union by nonmember nations often resulting in the advantage shifting away from the lower-cost producer to the higher cost producer B. Reduced Import Prices can result from importers efforts to remain competitive despite tariffs imposed C. Increased Competition and Economies of Scale 1. The larger market created also means more competing firms which can result in greater efficiency and lower consumer prices 2. Economies of Scale—lower production costs resulting from greater production for an enlarged market D. Higher Factor Productivity 1. Factor mobility leads to movement of labor and capital from areas of low productivity to areas of high productivity 2. Poorer countries may lose badly needed investment...
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...ASSIGNMENT ON INTERNATIONAL TRADE (Course no: Mgt-310) TOPIC: ECONOMIC INTEGRATION SUBMITTED TO: Dr. MD. ATAUR RAHMAN PROFESSOR DEPARTMENT OF MANAGEMENT STUDIES UNIVERSITY OF DHAKA SUBMITTED BY: GROUP: 08 ROLL: 127, 128, 141, 154, 211, 212, and 213 SEC-B, BBA 16TH BATCH DEPARTMENT OF MANAGEMENT STUDIES UNIVERSITY OF DHAKA DATE OF SUBMISSION: 09.07.12 ECONOMIC INTEGRATION CONTENTS SL. Topics No. 1. Meaning and level of Economic Integration 2. Objectives of Economic Integration 3. Importance of Economic Integration 4. Benefits from of Economic Integration 5. Arguments for of Economic Integration 6. Arguments against of Economic Integration 7. Economic Integration of Asia 8. Economic Integration of America 9. Economic Integration of Europe 10. Economic Integration of Africa 11. Modes of Economic Integration 12. Problems of Economic Integration 13 Danger of Economic Integration 1. Meaning and Level of Economic Integration: Meaning of Economic Integration: Economic Integration means agreements between groups of countries in a geographic region to reduce and ultimately remove tariff and non-tariff barriers to ensure free flow of goods, services and factors of...
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...Economic integration agreements come in three types: 1) bilateral, 2) regional, and 3) global. (Samii, 2011) Bilateral integration is where two countries cooperate in reducing tariffs. (Samii, 2011) Regional integration is where a group of countries are located in the same geographic area and agree to cooperate such as the European Union (EU). (Samii, 2011) And, global integration is where countries across the world agree to cooperate in trade agreements such as World Trade Organization. (Samii, 2011) Countries enter into these agreements seeking to reduce cost on both their imports and exports. In turn, countries will most likely see an increase in foreign direct investments resulting from trade blocs. (Curley, 2014) Trade blocs are created bringing countries closer together by eliminating tariffs. And as a result, demand changes based on the lower cost because now bulk productions are allowed. Consequently, the increased competition promotes greater efficiency within firms. (Curley, 2014) With some Trade blocs free trade is allowed within each country’s markets thereby encouraging each country to specialize in certain markets. (Economic Online, Unknown) In addition, jobs may be created because of the increased trade between members. (Economic Online, Unknown) And a final benefit is that firms inside the bloc are protected from cheaper imports from outside the blocs, such as the European Union show industry is protected from cheaper imports from China and Vietnam...
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...Fiji is not economically integrated with the United States. Fiji is a signatory under the European Union (EU) that grants non-reciprocal trade preferences to the countries in the ACP states. Fiji is a part of the SPARTECA a non-reciprocal preferential agreement. It covers the FIC, Australia and New Zealand. Fiji, however has sold 13.3% of their export to the United States. Fiji being a part of the regional integration EU has a RTA with EU- Papua New Guinea, MSG, PICTA and SPARTECA. Most of Fiji’s raw materials are imports. The country’s imports of GDP has had an increase from 2003 to 2008 of 58.9% but they had a decrease in exports down to 24.1% because of a decline in productivity and international competitiveness. I gather that because Fiji has been stagnant in keeping up with sales and productivity members of the FTA may not want to be deeply involved with them. The decline in exports also reflect the reduction of export opportunities, particularly with the clothing to the US. “Fiji has suffered preference erosion from multilateral and especially unilateral liberalization, including in clothing exports to its major Australian market, which now accounts for over 80%.” I pulled this excerpt from the WTO on Fiji’s progress in the trade profile “Fiji's export markets are now more diversified. Singapore displaced Australia, the United States, and the EC as its main destination, accounting for 18.6% of merchandise exports in 2007. Imports are almost entirely from Asia Pacific...
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