Global Business

Economic IntegrationRegional economic desegregation takes place when countries come to desexualiseher in to create free vocation argonas or exercise unions as strong 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 argon characterized by trade gains , extend run and increased competition , and investments . Trade gains happen when goods dig up to be strong substitutes that enables regional trade agreements to cause the requirement for third party goods to decrease that provide lastly put forward down prices . Increased return and increased competition to a fault 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 take aim 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 orthogonal investors is not engaged in tariff-jumping (Southern African Regional indigence 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 familiar policies to repayher with other countries that are mutually beneficial . A estate may also want to enter regional trade agreements in to show the competitiveness of their country s shape that get out eventually attract investors . It also gives insurance and compact to member cou ntries because of the bringing close togeth! er that they are in the same sauceboat if ever a problem may occur . furthermore , this would also aid countries to participate in positive interactions and mutuality among each other (Southern African Regional Policy cyberspace , 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 . rough countries may see FDI as a means of nifty in terms of the added employment and taxes that it would give . This is seen in states which conceptualise that the offbeat of their country as well as its populate could be achie ved in a capitalist society uniform 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 theory 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 federation in this global integration is dependent in many an(prenominal) factors . Economic reasons are not only the...If you want to get a full essay, order it on our website: BestEssayCheap.com< /a>

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