This website uses cookies to ensure you have the best experience. Learn more

Regional Economic Integration And The European Union

993 words - 4 pages

This paper will evaluate regional economic integration and its role in promoting global business and will discuss the advantages and disadvantages of it. The European Union (EU) will be looked at and discussed and the different countries involved in that union will be evaluated as well as their stage of economic development.The world is changing rapidly. One hundred years ago the world was very much separated by borders. With the advent of technology, the situation has changed drastically. Communications and transportation technology has created a regional and global marketplace in which to conduct business. One notable trend has been the regional economic integration. "Regional Economic Integration refers to agreements among countries in an economic region to reduce, and ultimately remove, tariff and non tariff barriers to the free flow of goods, services, and factors of production between each other." (Hill, 2005, 268) The common theory of comparative advantage supports the current trend towards regional economic integration. This allows countries to produce what they are best at and trade for other goods and services. Regional trade agreements also allow countries to increase production when there are fewer trade restrictions. Freeing up those trade restrictions benefits countries also because each country is different in their production capabilities. "They vary from one another because of differences in natural resources, levels of education of their workforces, relative amounts and qualities of physical capital, technical knowledge, and so on."(Congressional Budget Office [CBO], 2003)Regional Economic Integration no doubt has its staunch supporters and critics. One of the obvious advantages of regional economic integration greater world production by freeing up the trade barriers that was there previously. Another benefit of these agreements is increased balance of exports and imports. According to the CBO, another pro would be an "irrelevance in the balance of trade." Their current research concludes that an imbalance in trade has a minimal effect economically. There are other pros in regional economic integration besides economically. Some argues that these agreements also can serve to help stabilize regions that were previously in turmoil. According to the C.W. Hill, ''linking neighbor countries and making them increasingly dependent creates incentives for political cooperation." (Hill, 2005, 271)On the opposite side there are many argue against regional economic integration. Some argue that integrating can make a country lose its identity and autonomy. Another worry with integration is that it does not actually increase production and that it only creates what is know as trade diversion. Trade diversion occurs when a country simply starts trading with a new partner who offers the product or service for a cheaper price or in some cases shift from a higher cost producer internal to that country to a lower cost producer in another country....

Find Another Essay On Regional Economic Integration and the European Union

The European Union, its development, the steps taken in the development, the economic details regarding the Union and Future prospects of the union

3167 words - 13 pages on the way towards European Integration and started the three stage European Economic and Monetary Union. It modifies all previous treaties and officially began the gradual conversion to union. (Appendix C - The Maastricht Treaty).Despite these four being the most key treaties, there were other important treaties such as The Single European Act signed in 1986, which basically set in place the goal for a Single European Market, and The Amsterdam

International business: "How companies can make the most of opportunities offered by increasing regional economic integration?'

1244 words - 5 pages Since the Second World War most of developed countries focused on economic growth and stability within their boarder as well as organizations within their policies tend to potential raise on international and local markets. In order to achieve this goal a lot of successful companies form economic cooperation. Famous type of such union is regional economic integration, that includes countries eager to improve their economic development and become

Anatomy of a Regional Trading Bloc : The European Union (from the date of Formation to the year 2003)

7615 words - 30 pages the EEC by July 1, 1968. We study the functioning of the EEC under the following aspects: Common Agricultural Policy, Common Fisheries Policy, European Monetary Union, Factor Mobility, Regional Development Policy and Common transport Policy.Different Member countries of the EEC were following different agricultural policies before the formation of EEC. For example, the then West Germany and Italy fixed high support prices due to inefficiency of

Relation of knowledge and the integration of the European Union

907 words - 4 pages Knowledge is of the utmost importance to the modern man. Information technology and communications have experienced the greatest development in the past years, and we have entered the twenty-first century as a very knowledge-conscious society. To be part of the world, it is essential to keep up with all the latest advances, and to have a mind open to all cultures and nations, so that we could all work together towards a brighter tomorrow as

The European Union and European National Sovereignty

889 words - 4 pages How the EU represents supra-nationalism which is having authority and jurisdiction above national governments? What institution in the EU represents this trend? European Union is one the world’s most dramatic examples of economic and political integration. A total of 27 states are compromising their national sovereignty by transferring many areas of their decision-making and authority to a supranational organization. We cannot call the

Italy and the European Union

1731 words - 7 pages foreign policy. Hence, it first became the programme of the 'Movimento Federalista Europeo', and then it began to be considered the European Union founding text. From that point on, even if the Italian relationship with and approach to the European Union (EU) have changed overtime, Italy has always been one of the major supporters of the European integration process. Right from the beginning, Italy perceived European political and economic

Citizenship and the European Union

5550 words - 22 pages legal andpolitical rights. So complete became the overlap between national identityand citizenship status that, in many political systems, even those withseparate words, 'citizenship' and 'nationality' became interchangeable.And, according to Raymond Aron, it was a contradiction in terms to see1 Meehan Elizabeth, Citizenship in the European Union, London: Sage 1993;Meehan, "European Integration and Citizens´ Rights: A Comparative Perspective

Switzerland and the European Union

3536 words - 14 pages outside of the European Union (EU) and the European Economic Area (EEA), as it became the sole EFTA member to reject membership by referendum in 1992 . Despite this, Switzerland maintains a staunch economic relationship with members of the EU through a series of bilateral agreements involving trade, free movement of people, agriculture and taxation among others. These provisions between countries provide an increasingly interdependent European

Legislation and the European Union

2864 words - 11 pages Certain dynamics emerge in the process of integration of specific policy areas in the European Union member countries: With increasing Europeanization of governing in the multilevel system of governance in the EU, more and more national competences are moved to the European level (vgl. Scharpf 2002, p. 71). During this transfer, an increasing loss of power held by the national parliaments, or rather a shift of power from the national parliaments

Religion and the European Union

869 words - 3 pages Religion and the European Union The European Union, or E.U., has existed in its modern form since it was formed by the signing of the Maastricht Treaty in 1993. Since then, fifteen countries have joined the E.U., increasing the number of member countries to 27. Countries must meet strict standards when applying for membership to the E.U., as there are many factors which determine whether their request for membership is approved or denied

The European Union and Airlines

1346 words - 5 pages The European Union and Airlines Situation: Throughout the time one of the most regulated industries has been the airline industry. The creation of the European Union (EU) had allowed for the airlines from those countries to fly among each other’s with fewer regulations. This deregulation has propelled a wave of changes for the carriers based on these countries. One of these changes is the proliferation of strategic alliances as the

Similar Essays

The Economic Impact Of Integration Into The European Union

548 words - 3 pages trade, free movement of goods, services and capital and thus improves economy.To summarise, integration into the European Union will have a great impact on the country as a whole and on its economy in particular. It will guarantee financial support from the EU budget, stimulate the development of small and medium business, and facilitate trade in the framework of the Common Market. All in all, Lithuanian economy will benefit from the membership of the European Union.

European Economic And Monetary Union Essay

3924 words - 16 pages , 1999:84). Moreover, it is expected the union of firms could facilitate the sharing of intellectual property, research and development, capital and labour techniques, creating greater operational efficiency and improving both the firms competitiveness within the ‘Eurozone’ and international markets (Antweller, 2001). It was a common held opinion amongst European business leaders, that political and economic integration was necessary to ensure to

The European Union: More Economic Union Than Political Union

2186 words - 9 pages through communication, transport and trade (Sim, et al. 2003). The concept is closely related to those of economic globalization which integrates national economies into the international economy (Robinson, 2001). Such integrations thus have been achieved by trade, foreign direct investment, capital flows, and migration (Thelen, 2003). One of these networks has been the European Union (EU) which has come up as a major bloc amongst the European nations

Is The European Union More Than A Regional State System?

1928 words - 8 pages later this year can change the course of integration to directions unpredictable with current knowledge.Bibliography:Cini, Michelle: European Union Politics, (2003)McCormick, John: Understanding the European Union: A Concise Introduction, (1999)Nelsen, Brent F; Stubb, Alexander C-G: The European Union: Readings on the Theory and Practice of European Integration, (1998)Wallace, William: Europe After the Cold War: Interstate Order or Post-Sovereign Regional System, Published in: Review of International Studies: Special Issue 'The Interregnum' Vol. 25, (1999)