...Regional Integration for and Against Articles Mark Drury 445 March 9, 2011 Dr. Paul Mahajan Regional Integration for and Against Articles A trade bloc can be defined as a preferential trade agreement between two countries and is designed to significantly reduce trade barriers between the two countries. The integration of countries into trade blocs is commonly referred to as “regionalism” and it does not matter if the trade bloc has a geographical basis or not. They first started in the 1930’s. The main trade blocs of the world are: (1) in Europe, the European Union (EU), the European Free Trade Agreement (EFTA), the European Agreements, and the European Economic Area (EEA); (2) with the United States, the North American Free Trade Agreement (NAFTA), the Canada-US Free Trade Agreement (CUSTA), and the US-Israel Free Trade Agreement; (3) in Latin America, the Common Market of the South Latin American Integration Association (LAIA), and the Caribbean Community and Common Market(CARICOM) (Jones, 2010) Trade blocs are good because they remove trade barriers between countries. They also regulate the price and trade terms of trade between the two countries. Trade blocs also have a positive impact on welfare if they are more trade creating and less trade diverting. “George Orwell predicted that trade blocs would evolve into continent-spanning empires with ever-changing alliances. The eastward expansion of the EU and use of the Euro, southern expansion of NAFTA into the...
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...Regional Integration for and Against Articles University of Phoenix MGT-448 Stephen D. Julias, III April 2, 2011 Abstract Regional integration has been around for a long time. A definition is not easily formulated. Ordinarily the term refers to the integration of a nation of states into a larger collection. Regional integration can be described on one hand, as a vital method that requires a country’s eagerness to contribute to or unite into a larger whole. The extent of which the country shares and what the country shares establishes the level of integration. The different levels of integration are dependent on a predefined criterion. The descriptions of levels are the advantages and disadvantages of regional integration and how the stage for economic development relates to a potential business opportunity. The Advantage NAFTA The North American Free Trade Agreement (NAFTA) is an economic, international trade treaty connecting three nations that inhabit the North American continent (Canada, Mexico, and the United States) that began in 1994. NAFTA is designed to remove various trade barriers between Canada, Mexico, and the United States as well as a reduction or elimination of numerous tariffs and nontariff barriers. NAFTA is exceptional in that it has created the foremost regional integration agreement linking two highly developed countries, the United States and Canada, and a developing country, Mexico. Export opportunities have grown under NAFTA because of the tariffs...
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...Regional Integration for and Against Articles Introduction The North American Free Trade Agreement (NAFTA) is an agreement between the United States of America, Mexico and Canada. The agreement creates rules in the trade block and it was established in 1994. The goal of the agreement is remove or decrease the tariffs and non-tariffs barriers to stimulate trade. The NAFTA agreement included: * Removing all tariffs on 99 percent of the good by 2004. * Protection of intellectual property * Removal of most foreign direct investments with a few protections established for each country * Removal of barriers on the cross-border flow of service * Application of national environmental standard * Establishing two commissions with the power to impose fines and remove trade privileges if needed Regional integration is not only for economical reasons but it is also political. There is much opposition within each country and it takes many years to have an agreement that satisfies ever member country. Pros and Cons for NAFTA Advantages The main purpose for NAFTA is to create a larger and more efficient base for the entire North American region. The first advantage for the members of NAFTA was to reduce the tariffs that had been imposed in all their products. The cost of the products is also controlled in member nations of NAFTA since the import cost are not inflated by taxes. Lastly, the benefit is mutual for US and Canada to move production to Mexico. The...
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...Regional Integration for and Against Articles * Regional Integration for and Against Articles * En el siguiente escrito luego de escoger una región y un bloque comercial dentro de la misma, se identificaraa como esta región actua a favor de la integración regional y en contra. Se describe las ventajas y las desventajas de la integración regional y la relación de la etapa de desarrollo económico de la región, económicamente integrada a potenciales oportunidades de negocios. * Canada es una región dentro del bloque comercial “North American Free Trade Agreement” (NAFTA) o Tratado de Libre de Comercio de America del Norte (TLCAN). Este acuerdo eliminoo la mayoría de las tarifas entre los productos exportados de Estados Unidos, Canada y Mejico. Existen restricciones en muchas categorías, estas incluyen vehículos, computadoras, textiles y agricultura, en adicion, este tratado protege los derechos de propiedad tales como patentes, derechos de autor y marcas comerciales. Este acuerdo describe la eliminación de restricciones a la inversión entre los tres países. * Este entro en vigor el 1 de enero de 1994 y entre sus objetivos esta el facilitar la circulación de productos y servicios entre los países, la creación de procedimientos para la aplicación y el cumplimiento del tratado. * La integración regional en términos estructurales, se refiere a unas ventajas que aplican a todo bloque comercial entre diferentes países. La primera se relaciona...
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...Regional Integration for and Against Articles MGT/448 2014 Regional Integration for and Against Articles Regional Integration Trade blocs are agreements to help reduce trade barriers between participating states, regions, or countries ("trade bloc," 2014). The concept of regional economic integration takes the trade bloc concept and centers it into different regions on the globe. Regional economic integration is an agreement to reduce regional trade barriers, remove tariffs and non-tariff barriers that will hinder the flow of free trade of goods, services, and factors of production among countries in a geographic region (Hill, 2009). There are many regional trade blocs in place today that have achieved harmonious and non-harmonious integration. Following is a closer look at some of the advantages and disadvantage one trade bloc that is situated in the Caribbean region named, Caribbean Community (CARICOM) and its expansion into CARICOM Single Market and Economy (CSME). Caribbean Community (CARICOM) The Caribbean Community (CARICOM) was established in July 1973 as an expansion of the former Caribbean Free Trade Association (CARIFTA) that had been in place for seven years prior ("Caribbean community (caricom)," 2014). The CARICOM trading bloc profile states that it goes beyond the normal boundaries of free-trade to encompass programs that will sustain economic development within the region ("Caribbean community (caricom)," 2014). States located outside the CARICOM...
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...Regional Integration for and Against Articles Advantage of the North American Free Trade Agreement The North American Free Trade Agreement has come into power as of January 1994. Causing Mexico, Canada, and the United States to come together. The objective of NAFTA is to generate improved trading environments through decreasing tariff, elimination of investment blockades, and enhancing property protection By putting together the biggest trade and industry region in the globe, to some extent exceeding the Europeans marketplace.. The operations of North American Free Trade Agreement has help Mexico's financial system in agreement to the United States' financial system, which has helped Mexico ‘sells to other countries boost tremendously as of 1993. 1994 to 1997, United States. operations with Mexico as well Canada increased 44%. this large development is credited mainly through decreasing tariffs. While tariffs were decreased, the United. States. merchandise grow to be less expensive and more competitive in Mexico as well Canada’s marketplaces, while the demands of goods increased in the United States (Dentzer, 2004). In Mexico, the removing of the barriers with tariffs, has caused investments to develop as well produced employment raising the Gross Domestic Product, and dropping prices for consumers. In Mexico. Before the North American Free Trade Agreement was create, spending was not easy. Manufacturers were required to go the Mexican Government for support...
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...Regional Analysis and ASEAN Michael Concepcion MGT448 July 16, 2012 Martha Alcala Regional Analysis and ASEAN Regional integration can provide stability to a nation’s economic and political arenas. However, regional integration can be costly if trade diversion is not considered. The Association of Southeast Asian Nations (ASEAN) is advantageous for the member countries because it offers promise of solidarity and economic prosperity. However, historically member countries of ASEAN have not always been political allies and unresolved territorial disputes are still an issue. Finally, economic development of the countries of ASEAN is becoming increasingly enticing to larger countries such as China and America because of its potential “…as a market and production center for big companies from all over the world.” (Rabin, 2012) Regional Integration Regional integration can open up trade amongst nations that can have economical and political advantages but can often be costly due to diversion. Two cases can be made for regional integration. First, the economical advantages stem from the theory of free trade. According to Hall (2009), “…the theoretical ideal is an absence of barriers to the free flow of goods, services, and factors of production among nations.” (pg. 279, para.2) Regional integration among a few countries is easier to coordinate and function than integration on a global scale. Regional integrating bodies like the Association of Southeast Asian Nations (ASEAN)...
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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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...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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...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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...STRATEGIES Instructor: MICHAEL GAY Schedule: 10/12/2011 - 11/09/2011 Campus: SOUTH COAST LEARNING CENTER Group ID: SC11BSM06 Regional Integration for and against Articles EU Regional Integration Advantages The development of our world economy displays its escalating integrity and is based on international specialization and also co-production, and not the mention the consolidation of economic relations among states and business entities. Integration is a judicial law of the progress of international economic relationship. European Union is the foremost commercial power in our world today. The EU has attained the national unity in the economic and social policy: not a member of the EU can’t secure the prices of agricultural products or to enter in commercial agreements with third world countries or relations, state aid to companies individually have to be held in beneath the Brussels treaty. Countries have to meet the terms with general rules, environmental safety and consumer protection as well. The reaction of the leading countries: the influential’s talked about their success of monetary union. The key advantages of regional integration is having newer, cheaper, faster and more diversified, goods, resources, services, facilities, ideas and knowledge as well as higher living standards available. The powerful forces of international economic integration are the companies. They are interested in achieving an optimal level of activity, including throughout co-operation with distant...
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...Journal of International Commercial Law and Technology Vol. 5, Issue 3 (2010) The role of South Africa in SADC regional integration: the making or braking of the organization∗ Saurombe Amos University of South Africa Sauroa@unisa.ac.za Abstract. The economic and political strength of South Africa in Southern Africa is undeniable. South Africa is the strongest economy in Southern Africa and in the whole continent of Africa. Regional and global interests lie at the heart of South African’s foreign policy resulting in the need to create compromises that may disadvantage the SADC block. South Africa is the current chair of SADC and its leadership role is critical. The country is also the gateway to foreign direct investment to the developing world. This paper seeks to discuss the critical position which South Africa finds itself in. The challenge to provide leadership at regional and global level has also been compounded by the domestic outcry for a need to deal with issues at home. South Africa holds the key for the success of SADC both at economic and political levels. However SADC’s dependence on South Africa may turn out to be a stumbling block since there is divided attention. This has been shown by South Africa’s ‘go it alone’ approach when it comes to negotiating trade agreements, e.g. with the EU, as well as its unwillingness to compromise on the Economic Partnership Agreements (EPAs) that the other SADC Members States are signing. What is obvious is that SADC needs...
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...Regional Integration for and Against Articles NAFTA (North American Free Trade Agreement) is a free trade agreement involving Mexico, Canada, and the United States. NAFTA is the most limited of the free trade unions. NAFTA is restricted to eliminating tariffs, quotas, and other trade impediment among Canada, Mexico, and the United States. NAFTA has advantages and disadvantages of regional integration, and also showing how it persons would favor, and be against it. Integration and agreements made will reduce tariffs barriers that are associated with trades of good, services, and the factors of produced goods between countries (Hill, 2009). Advantages Between the two countries Canada and the United States NAFTA has eliminated most of the tariffs, which are incorporated in the trades of the products. One of the main advantages is that it will provide a higher quality of goods, and services to consumers in all countries at a lower rate. In January 1994 NAFTA became the biggest trade bloc in the world in relation to GDP (Gross Domestic Product) all, while becoming a key force in escalating the agricultural trade between Canada and the U.S. Trades between Mexico, Canada, and the U.S. have gotten better throughout the life of the unification (Free Trade Bloc, n.d.). The advantage of integration regionally is that there are no imposed restrictions on the trade. This will allow countries to focus on the services and...
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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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...on different forms, including regional cooperation, market integration, development integration, and regional integration. African leaders have long envisaged regionalism as a viable strategy to pursue with a view to uniting the continent both politically and economically. While regionalism in Africa has taken on different forms to accommodate the changing national, regional, and international environment, all organizations that aim to integrate regional economies in Africa have adopted market integration as a component of their strategy, with a view to increasing intra-regional trade. Market integration is the linear progression of degrees of integration beginning with a free trade area (or in some cases a preferential trade area) and ending with total economic integration. The model for such integration is the European Union (EU). Notwithstanding the fact that market integration has failed miserably on the continent,1 it continues to be highly regarded by most African leaders as a solution to Africa’ growing marginalization within the world economy. The creation of NAFTA s (North American Free Trade Agreement) and the movement toward EU monetary integration, only served to reinforce the commitment African leaders have toward market integration. In response to these events, the member states of the Organization of African Unity (OAU) in 1991 signed the Abuja Treaty creating the African Economic Community (AEC), which calls for the total integration of African economies by 2025...
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