...by The European Union (EU), regional economic integration is replete with political, economic, and cultural danger. Discuss through the use of valid, real-life examples." It seems to be a constant discussion in writing of the issues of regional economic integration. For many years, globalization has brought us countless benefits to the world, and built up a greater reliance on other countries for goods and services. This comes up with a closer international cooperation to certify that regional integration is ever more comprehensive and contributes for the value of all. The term ‘Regional economic integration’, “refers to agreements between countries in a geographic region to reduce, and eventually remove, tariff and non-tariff barriers to the free flow of goods, services, and factors of production between each other" (Hill, 2013). It is inspired by a desire to exploit the advantages from investment and free trade in order to reduce the tensions that can lead to international conflict. However, often the rhetoric does not match the reality. Economic integration, even provides some benefits for member, is facing a litany of political, economic, and cultural danger during the process of development. Thus, regional economic integration can be harmful for the member country owing to their disruptive influence. Here in this essay, we will mainly focus on evaluating the threats to regional economic integration and compare and contrast the positive impacts of economic regional integration...
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...Regional Economic Integration Learning objectives • Be able to explain the different levels of regional economic integration. • Understand the economic and political arguments for regional economic integration. • Understand the economic and political arguments against regional economic integration. • Be familiar with the history, current scope, and future prospects of the world’s most important regional economic agreements. • Understand the implications for business that are inherent in regional economic integrations agreements. This chapter discusses regional economic integration, agreements among countries within a geographic region to achieve economic gains from the free flow of trade and investment among themselves. There are five levels of economic integration. In order of increasing integration, they include free trade area, customs union, common market, economic union, and full political union. Integration is not easily achieved or sustained. Although integration brings benefits to the majority, it is never without costs for the minority. Concerns over sovereignty often slow or stop integration attempts. The creation of single markets in the EU and North America means that many markets that were formerly protected from foreign competition are now more open. This creates major investment and export opportunities for firms within and outside these regions. The free movement of goods across borders...
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...As exemplified by The European Union (EU), regional economic integration is replete with political, economic, and cultural danger. Discuss through the use of valid, real-life examples A regional economic integration, is when a certain number of nations, agree to reduce or eliminate economic barriers (and in certain levels of integration non-economic barriers as well), in order to create an adequate atmosphere between them for the flow of goods, services and factors of production. There are 5 levels of economic integration and the bigger the level is, the bigger the danger is. The EU is the biggest economic integration in the world because they have created an economic and monetary Union. After World War II, Europe was devastated in economic, political, moral and cultural terms. That’s why a certain number of countries decided to sign an agreement of “non-war” between them. Further on, the European Economic Community was created and more countries were joining it. This was the beginning of the biggest political and economic integration in the world, signed in 1957 (known as treaty of Rome). Then border barriers were removed and in 1993, the European Union was formally established. The objective of the European Union is to create an economic and political union between the members, to create a single market with common policies and a common government, which lead them to a regional economic integration. This integration has shown some profits and some dangers too. We’re going...
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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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...Throughout the past 60 years the European Union has established itself as a leader in dismantling national level economic and cultural barriers in return for a meso-scale regional framework which has gone on to become a key feature of globalization. In wake of the atrocities committed during World War II, Europe sought to establish a community of peace, stability, and prosperity with the common interest of humanity (De Vasconcelos, 2005). This unification has been achieved through the liberalization of four essential freedoms of movement: goods, service, capital, and labour (Molchanov, 2007). Even reconciliation between former enemies, such as France and Germany, came from the understanding that new world order has dampened the ability of nations to solve their problems on their own. Integration at a regional level can be thought of as integral part of globalization as it has become Europe’s primary defense amidst rising global competition (Murray, 2011). In fact, Peter Schmitt-Egner identified the process undertaken by the EU as transnational regionalism, as it seeks to 1: Utilize European integration as arena for transnational learning to foster internal regional development and; 2: Enhance regional competence to create a ‘Europe of Regions of Citizens’ (Schmitt-Egner, 2002). For Europe, regional integration has presented itself as a window of opportunity that allows for: “outward looking trade policy, internal competitiveness and involvement in cross-border agreements” (Downs...
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...E SSAY COLLECT ION Crisis in the Eurozone Transatlantic Perspectives ESSAY COLLECTION Crisis in the Eurozone Transatlantic Perspectives This publication is a part of CFR’s International Institutions and Global Governance (IIGG) program and has been made possible by the generous support of the Robina Foundation. The Council on Foreign Relations (CFR) is an independent, nonpartisan membership organization, think tank, and publisher dedicated to being a resource for its members, government officials, business executives, journalists, educators and students, civic and religious leaders, and other interested citizens in order to help them better understand the world and the foreign policy choices facing the United States and other countries. Founded in 1921, CFR carries out its mission by maintaining a diverse membership, with special programs to promote interest and develop expertise in the next generation of foreign policy leaders; convening meetings at its headquarters in New York and in Washington, DC, and other cities where senior government officials, members of Congress, global leaders, and prominent thinkers come together with CFR members to discuss and debate major international issues; supporting a Studies Program that fosters independent research, enabling CFR scholars to produce articles, reports, and books and hold roundtables that analyze foreign policy issues and make concrete policy recommendations; publishing Foreign Affairs, the preeminent journal...
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...Asean 2015 SO soon! Indeed time flies at lightning speed and here staring at us is Asean 2015! And what’s in it for us in academe? But first, a very brief overview of Asean. We are one of ten countries wishing to band together as a single market. We expect that by end of December this year Asean will have measures mostly in place which are designed, like the European Union, to reduce trade barriers and consequently attract more investments. We expect to have free flow of goods, services, investment and skilled labor among “us” – us, meaning the ten member countries of Southeast Asia with the 617 million people (2011 estimate) inhabiting Singapore, Indonesia, Malaysia, the Philippines, Thailand, Brunei, Vietnam, Laos, Myanmar and Cambodia. In the future, two other countries could be incoming members of Asean: Papua New Guinea (on candidate status since 1976) and Timor-Leste (on observer status since 2002). These two countries have a combined population of 7,300,000 (2011 estimate). Unlike the EU, Asean will likely not have a common currency and neither the same nor a similar governing structure. About education, four priorities in this area have been laid down by the Asean Education Ministers. These are first, promoting Asean awareness among Asean citizens, particularly the youth; second, strengthening Asean identity through education; third, building Asean human resources in the educational field; and fourth, strengthening the Asean University Network. Committees on these...
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...Chapter EIGHT CROSS-NATIONAL COOPERATION AND AGREEMENTS OBJECTIVES • To profile the World Trade Organization • To discuss the pros and cons of global, bilateral, and regional integration • To describe the static and dynamic effects and the trade creation and diversion effects of bilateral and regional economic integration • To define different forms of regional economic integration • To present different regional trading groups, such as the European Union (EU), the North American Free Trade Agreement (NAFTA), and Asia-Pacific Economic Cooperation (APEC) • To describe the rationale for and success of commodity agreements Chapter Overview Regional economic integration represents a relatively new phenomenon in the history of world trade and investment. Chapter Eight first examines the roles of the General Agreement on Tariffs and Trade and the World Trade Organization in determining the ground rules of the world trade environment. It then introduces the basic types of economic integration and explores the potential effects of the process. Next it examines in detail both the European Union (its structure and its operations) and the North American Free Trade Agreement and briefly describes a variety of other regional economic groups. The chapter concludes with a discussion of various commodity agreements and producer alliances, including the Organization for Petroleum Exporting Countries. Chapter Outline OPENING CASE: TOYOTA IN EUROPE Known for...
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...Caribbean Community and Common Market The Caribbean Community and Common Market (CARICOM), was establish in 1973 with the Treaty of Chaguaramas. The purpose of the CARICOM is to promote economic integration and development. The CARICOM main focus was in less developed areas of the region. There are many nations part of the CARICOM such as Belize, Trinidad and Tobago, Jamaica, Haiti, Barbados, and the Bahamas, just to name a few. In total there are 15 nations in the CARICOM and 5 associated nations. The CARICOM manages a common market and creates policies on education, labor, science, technology, tourism, health, foreign policy, and the environment. Moreover, there are other institutions associated with the CARICOM such as: the Caribbean Development Bank, the University of Guyana, the University of the West Indies, and the Caribbean Court Justice, which was established in 2005. Lastly, the CARICOM replaced the Caribbean Free Trade Association. Major Article Summary The article of choice is focus on the different pillars of the CARICOM. The article mentioned how the CARICOM developed 5 regional health institutions; they also invested in tertiary-level institutions, and the Caribbean Cooperation in Health, which is the guide for the regional health agenda for the CARICOM states. In 1989, the government decided to fashion the Caribbean Single Market and economy to improve the ability of the CARICOM. This will allow the CARICOM to insert itself more advantageously into the...
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...background call the departure of an Air France flight. A family walks by; a man, a woman and a girl of about six. The man calls out to the little girl and his accent confirms for me, his East Indian heritage. The girl’s attention is absorbed in a bright pink Nintendo DSi. Later at the gate, a seventy five year old woman from Nebraska, sits next to me and tells me that she is on her way for an ‘overseas adventure’ in South America. She has always wanted to do this, she says, handing me what looks like a brochure. The words across the top actually read ‘Overseas Adventure’. This seventy year old woman found the tour on the internet, whilst surfing on her grandson’s computer. Another young child is sitting across from me. I don’t recognise the East-European sounding language in which the woman sitting next to him speaks. The little boy is also absorbed in a DSi. Page 1...
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...back to take two steps forward One would be hard-pressed to a find a country in the world today which is not a member of a regional agreement. In fact, most countries are members of numerous such agreements. Regionalism, multilateralism, globalization and interdependence are all phrases that are heard and used often. The problem, then, is not the recognition of these issues, but rather reaching some form of consensus on what their implications will be. In recent years, the growth of regional trade agreements has been one of the most significant developments in international relations, and the impact of these agreements on the multilateral trading system as well as on the economic and political relationships between countries, is a topic on which both economists and policymakers are divided. The available literature on this subject is overwhelming, with authors that include Paul Krugman, Alan Winters and Jagdish Bhagwati. This paper will provide a brief overview of the different stages of regional integration, examples of such regional agreements, and the basic elements of each type of regional agreement. Thereafter, I will give my own opinion on the rise of regionalism and the global implications this phenomena holds. Table 1: Stages of economic integration, their basic elements and examples of agreements Stages of Economic Integration Basic elements & examples of agreements Basic elements and examples of agreements Free Trade Agreement (FTA) Zero tariffs between...
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...Quazi Tasnim Hasan ID # 112 111 051 Assignment No. 4 What is economic integration? For the Last 65 years, the world has undergone significant changes. The decade of the 1970s was dominated by the two energy crises. Industrial economies were faced with a new “enemy”: stagflation—a combination of high inflation and unemployment. Developing countries were increasingly becoming more dependent on foreign borrowing and centrally planned economies were unable to secure economic growth. Furthermore, the world witnessed a radical transformation during the past two decades. The greatest economic experiment of the twentieth century was the movement from communism to a market economy, which began in Mikhail Gorbachev’s Russia in the mid-1980s, and then spread to Eastern Europe at the beginning of the 1990s and to China later on during the same decade. Although the transition to a free market has led to disappointing outcomes, most Eastern Europe countries have concentrated on integrating their economies with Europe and on becoming part of the EU. All these events led to the world becoming more and more global in nature and to defining globalization as a closer economic integration among nations through increased trade and capital flows. It also refers to labor movement and technology transfer across international borders as well as cultural and political issues, which are beyond the scope of this chapter. Globalization is the result of technological processes occurring mainly in the...
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...of this paper is to assess the impact of globalization on the Caribbean business environment. Much has been written about globalization which is more accurately viewed as a process of change rather that an event which has already occurred. The impact of globalization on any environment can be both positive and negative and can be described as the enablers or the constraints which affect the decisions made by leaders, both government and business. It also refers to the way these choices affect the lives of all people. Scholars David Held, Anthony McGrew, David Goldblatt and Jonathan Perraton developed a general framework for understanding the process and characteristics of globalization. The authors said that, “in its simplest sense globalization refers to the widening, deepening and speeding up of global interconnectedness. They also suggest that the process of Globalization does not only have one kind of impact or outcome but four different types namely Decisional, Institutional, Distributive and Structural: • Decisional impact. How does globalizing processes affect how individuals, corporations, organizations and governments make decisions? • Institutional impact. How does globalization change the agendas of organizations and individuals, structure their choices and influence their preferences? • Distributive impact. How does globalization change the way wealth and power are distributed within and among countries? • Structural impact. How does globalization structure...
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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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...within the region, though it recognises that these can have an impact on Open Sky arrangements. The rationale for Open Sky is taken to be to promote competition in the airline industry, and to give all airlines from ASEAN the scope to compete on intra ASEAN routes. Open Sky will also give airlines extra flexibility over their route development. Issues which need to be considered include: How well Open Sky will work in ASEAN? Will markets be competitive enough? Will there be shifts in hub location? Will anti competitive strategies affect operation? And will there be instability in the industry? 2. Experience of Open Skies Elsewhere There are many Open Skies bilateral agreements, and a few regional agreements. Few regional Open Skies agreements have led to substantial liberalisation or integration. The exception is Europe - Open Skies in Europe has meant the formation of a single aviation market. Significantly, this arrangement did not come about as a result of countries negotiating an open skies agreement - rather it was imposed on them by a central authority, as a consequence of the Treaty they signed when joining the Community. Open Skies have worked well overall in Europe. There has not been excessive instability, there has been a moderate degree of restructuring, and there has been significantly more competition, especially from the low cost carriers which now have an important share of the market. 3. Policy Background Within...
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