List of the Advantages of Vertical Integration. Geography of the region 2. Is has been positive for Mexico because we have seen a reduction on poverty rates, real income rises, lower food prices. It serves as a way to unite the countries and result in them having successful and ever increasing economies that are self-dependant and exist in harmony. I will also describe the advantages and disadvantages of regional integration within both articles and relate the stage of economic development of the economically integrated region to potential business opportunities. our goal and the unique role of the Caribbean Court of Justice in Benin is a founding member of the WAEMU, a customs union, along with three of its direct neighbours, Togo, Niger and Burkina-Faso, and four other countries. The phenomenon of regional integration. Regional integration in Africa has been an aspiration that a majority of countries have been working towards for the last few years, most notably after their liberation from colonisation. So, like all regional integrations the formation of CARICOM comes with its advantages and disadvantages. Since a regional common market obviously provides a much larger market than that offered by the domestic market of a single country, economies of scale, both internal and external, become possible with the widened size of the market. ... • MFN allows smaller countries to participate in the advantages that larger countries often grant to each other, whereas on their own, smaller countries would often not be powerful enough to negotiate such advantages by themselves. Well, according to EU Learning, Regional Integration is the process by which two or more nation-states agree to co-operate and work closely together to achieve peace, stability and wealth. Court of Justice Judges and staff. The most important aspect of regional integration is the ability to help strengthen economic as well as social and cultural ties between countries, and the biggest advantage is the ability to establish and maintain free open trade. Accra, June 21, GNA- Alhaji Muhammad Mumuni, Minister of Foreign Affairs and Regional Integration (MOFARI) on Wednesday urged citizens within the Economic Community of West African States (ECOWAS) to facilitate the full integration of the Region. 1. Regional Overview required the assistance of a funding agency who understood Regional integration is growing as a means for economic growth for many countries. Trade gains are one of the major advantages of regional integration for individual member states. For those that can meet those challenges, the potential for long-term benefits in any size of market can be quite profound. The most effective approach is to compare the advantages and disadvantages of transnational IT, taking into account the most strategically important issues in the process. The chosen trading bloc is the EU. Investing in shared public services, such as a regional transportation infrastructure, would allow cost pooling and improve connectivity in the region. "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, 2004). The negative impacts of globalization focus onthe destruction on the environment that is export-oriented. Each country makes decisions and policies that position them to maximise the benefits and minimise the challenges presented by globalisation. In addition, the paper will discuss the advantages and disadvantages of regional integration as it relates to (NAFTA, EU, APEC, ASEAN, CAFTA). The advantages and disadvantages of vertical integration show it is a useful investment to make if the capital exists to make it. Communitynot separated by water. A number of leaders called for the integration of Africa already soon after independence, but it was only in the 1970s and 1980s that concrete steps were taken to re-launch or … You see, countries got wise to the fact that developing trade alliances using regional integration helps strengthen their trade and, as a group, makes them stronger. advantage. The European Union is an economic and political union of 27 member nations which are located in Europe. Regional integration allows countries to: Improve market efficiency; Share the costs of public goods or large infrastructure projects; Decide policy cooperatively and have an anchor to reform; Have a building block for global integration; Past efforts at regional integration have often focused on removing barriers to free trade in the region, increasing the free movement of people, labour, goods, and capital across national borders, reducing the possibility of regional armed conflict (for example, through Confidence and Security-Building Measures), and adopting cohesive regional stances on policy issues, such as the environment, climate change and … Regional economic integrations is also defined as “agreements among countries, in geographic region to reduce, and ultimately remove tariffs, and nontariff barriers to the free flow of goods, services, and factors of production between each other” (Hill, 2009, p. 276). BUS 240 It serves as a way to unite the countries and result in them having successful and ever increasing economies that are self-dependant and exist in harmony. discontinue and those which can be re-worked and re-deployed to continue Within the EAC, however, Tanzania was the poorest performer as far as preparedness for integration is concerned. Competition for … Regional Integration Theory of Change ..... 11 Figure 2.1. In the following paper will attempt to convey both the advantages and disadvantages of regional integration demonstrated by various global trading blocs, analyze the economic development of several countries in the ASEAN bloc, and its effect on potential business opportunities. This calls for closer international cooperation to ensure that regional integration is ever more inclusive and works for the benefit of all. Regional Integration : Concepts , Advantages , Disadvantages and Lessons of Experience @inproceedings{2005RegionalI, title={Regional Integration : Concepts , Advantages , Disadvantages and Lessons of Experience}, author={}, year={2005} } Published 2005; Regional economic integration has a fairly long history in virtually all parts of Sub-Saharan Africa (SSA). Advantages of regional integration The form of regional integration that was envisioned in the European Union was designed to lead to institutional building and strengthening of the member states. Globalization has affected the products people consume, theenvironment, culture, security, and idea exchange between different countries. • Benefits of regional integration • The role of individuals, businesses and government in the ... country's ability to take advantages of the changes. To define regional economic integration would be to say to arrange an agreement between country’s that agree to manage trade, fiscal or momentary policies. Throughout this paper we will discuss the promoting of regional integration into the Northern South America region. Investing in shared public services, such as a regional transportation infrastructure, would allow cost pooling and improve connectivity in the region. Institutional strengthening and free functioning of market rules. Trade liberalization and export promotion 3. Regional Integration For and Against Articles “ Describe the advantages and disadvantages of regional integration and relate the stage of economic development of the economically integrated region to potential business opportunities.” John O’Brien, MBA April 1, 2011, Harri Daniel, 1 Comment. Foreign Minister harps on advantages of Regional integration. This advantage is possible because there is more information that is available to the company due to the increased availability of production inputs. Besides NAFTA, regional integrations such as: EU, APEC, ASEAN, CAFTA, or others may be discussed for the purpose of comparing advantages and disadvantages of regional integration. First, regional integration is an important building block in deterring violent conflicts between nations. NAFTA goal is to create a trilateral trade bloc in North America to eliminate many barriers to … The EU was formed the Maastricht Treaty in the year 1993 and it operates through a system of a common market and customs union for the member states who also share a common currency the Euro. Another is taking seriously the findings and recommendations of the study of ASEAN’s competitiveness that we have commissioned. Rhetorically the advantages of regional integration in Africa were recognised even before the creation of the OAU in 1963. Member countries in a regional economic integration agreement have a wider choice of services and goods that were previously unavailable. ...Regional Integration 3 pages, 1238 words. Please join StudyMode to read the full document. Regional integration increase a nation economic activities overall, which in turn raises GDP and can provide better living standards for all citizens within the regional block. In other words, regional integration is the joining of individual states within a region into a larger whole. For instance, the European Union only considers a few languages as official means of communication, leaving out languages used by remote communities in Europe, such as Breton, Welsh and Frisian. In recent decades, the globalization of markets and the expansion of free-trade agreements have prompted many areas of the world to consider regional integration as a means to better compete in the world economy. For instance, policy barriers at the border may offset the gains transport infrastructure cooperation. to drive our mission and objectives. In case of economics similar concept is there which is called economic integration where many countries of the same region come together by eliminating trade barriers between the countries and aligning their monetary and foreign policies to benefit the whole region. University of Phoenix Deeper regional integration to allow cost sharing and risk pooling would promote stable growth. One level is in the free trade area which has no barriers for the trade of goods among member... ...1. GLOBAL INTEGRATION: ADVANTAGES AND DISADVANTAGES Globalization is the process by which different societies, cultures, and regionaleconomies integrate through a worldwide network of political ideas throughtransportation, communication, and trade. Member countries remove all barriers to trade between themselves but are free to independently determine trade policies with nonmember nations. The need for such alliance gave way to the birth of a Single Market for the Caribbean region - The CARICOM Single Market and, 3. Therefore in order to fully understand and appreciate the importance of these efforts at integration, , a review at all levels is important. surveys, focus groups, workshops, and interviews as well as from secondary These talks lead to the North American Free Trade Agreement (NAFTA). Spain is a member of the European Union. These stages or . 2. Association of Southeast Asian Nations (ASEAN) The purpose of regional integration is to achieve economic gains through free trade flow and investments between neighboring countries often by lowering or eliminating tariffs against imports from fellow member countries. January 25, 2012 Another purpose to the integration is to create institutions responsible for policy formulation concerning issues like education, health, labor matters and foreign policy within the member nations. MGT 448 Global Business Strategies Regional Integration Absence of a common strategy for development 3. Small economies often lack the resources to make large public investments. Regional integration is a process by which sovereign states in a particular region enter into an agreement to promote economic growth through the reduction of barriers to trade restrictions and safeguard common interests such as the environment, transnational IT strategies. This acceleration inglobalization can be attributed to an increase in free-trade activities, emergingtechnologies, or the worldwide acceptance of markets. It is an economic and political agreement between the European member states that binds countries together through treaties, which have been signed by every country in the union. Differences in stages of growth and development 4. The EU aims at achieving complete fiscal and political harmonization and integration in the region. ...Regional Integration is when an economic alliance or trade agreement is formed among countries that are located geographically close to one another. Shortcuts {title} Citation export ; Journal issue ; Full text in French. The EU has enforced a standardized law system that applies to all member states which has helped it to develop to a single market(Nugent, 2006). Deepening of democratic government systems. Regional Integration in the CEMAC Region: Recurrent Institutional Problems. Regional Integration 1. We can describe integration as a scale, with 0 representing no integration at all between two or more countries. Regional Integration is a process in which neighboring countries enter into an agreement in order to upgrade cooperation through common institutions and rules. Emphasis is placed on opening markets, eliminating trade barriers a… Since a regional common market obviously provides a much larger market than that offered by the domestic market of a single country, economies of scale, both internal and external, become possible with the widened size of the market. 4. Deeper regional integration to allow cost sharing and risk pooling would promote stable growth. It … September 22, 2015. by Kizito Sikuka – SANF 15 no 51 The benefits of belonging to a shared community in southern Africa are reaching the lives of many people in the region, according to a new publication released … According to Hill, regional economic integration are agreements among countries in a geographic region to reduce, and ultimately remove tariff and non-tariff barriers to the free flow of goods, services, and factors of productions between each other (Hill, 2009). There is little doubt that globalization can be a powerful engine for sustained economic growth. In other words, regional integration is the joining of individual states within a region, The Role of Regional Integration in Promoting Global Business. Another advantage is the existence of peace it brings between the nations. Besides the European Union, other trade-related regional integration policies include numerous agreements in Africa: for example, the Southern African Customs Union Agreement, the Multilateral Monetary Agreement and the Indian Ocean Commission. In this paper, I will select a region, chose a trading bloc within that region, and write an article in favor of regional integration and another against it. The Canadian International The Caribbean Community; members of the Bench and private and public by D?sir? This paper will analyze the role of NAFTA (North American Free Trade Agreement) in promoting global business. Against an international backdrop of changing political and economic priorities, Africa must plot a new course for its industrialisation and economic development, using the momentum of regional integration. The rest of the world is not discriminated 6. Another advantage is the existence of peace it brings between the nations. Some of the advantages are, * Foreign Direct Investments (FDI) stimulates economic growth through the sharing of technology, marketing channels, managerial know … Regional integration efforts, however, need to go hand in hand with competitiveness-enhancing policies as explored in other parts of the Africa Competitiveness Report. Regional economic integration is motivated by a desire to exploit the gains from free trade and investment. An example is the North American Free Trade Agreement (NAFTA). The most critical of all these factors is, Advantages This encourages more trade amongst member nations. It is important as well, before beginning my articles, that one understands basic details of NAFTA. Tariffs and restrictions on trade with nations outside the agreement are retained. Context: regional integration and trade in Benin’s region 2.1 Regional agreements. Advantages that are seen by this regional integration is to help these nations accelerate in the cultural development, economic growth, and social progress by being able to trade goods or services freely between one another. For Africa, a vast continent of over 1.2 billion people, integration has considerable potential not only for promoting Over the past few decades globalization has brought tremendous benefits to the world, and an even greater reliance on others for products and services. Regional integration in the form of NAFTA brought many economical and political advantages to Mexico. Conflict is replaced by constructive dialogue. This is part 1 of a video giving information on Regional Integration, under the topic Challenges and Opportunities of Regional Integration . Regional integration’s impact on trade and investment flows, allocation of economic activity, growth, income distribution are often difficult to assess. Regional economic integration has enabled countries to focus on issues that are relevant to their stage of development as well as encourage trade between neighbors. These actions increase duty free trade, tourism, movement of labor, and the flow of capital across national borders, reducing the possibility of conflict. The degree of integration depends upon the willingness and commitment of independent sovereign states to share … Regional integration in Southeast Asia (ASEAN): The impact and Implication. Another advantage of regional integration is that the effect of a large market will increase global competitiveness. They can also easily acquire products at lower costs following the removal or lowering of tariffs. ...Advantages & Disadvantages of Regional Integration By David Alfredo, an eHow Contributing Writer Regional integration, advantages and disadvantages. Bank Group Regional Integration Investment by Regions ..... 18 Figure 2.4. Regional integration promotes global business in that it removes in stages or all together, previous barriers to foreign investments and other business ventures. Regional Integration: Concepts, Advantages, Disadvantages and Lessons of Experience1 1. The regional integration of the Association of Southeast Asian Nations (ASEAN) includes Indonesia, Malaysia, Philippines, Singapore, Thailand, Brunei Darussalam, Vietnam, Lao PDR, Myanmar, and Cambodia. Feedback was sought from and At that time, I referred to three forms of integration. The Southern African Customs Union (SACU) is the oldest customs union in the world but has relatively little to show for its longevity. This paper represents the opinions of the author, and is the product of professional research. In European Countries, Regional Integration, Global Business as pertaining to our topic describes changes in our world's economy that result from dramatically increased internationational trade and cultural exchange. The Northern South America region contains two countries Columbia and Venezuela, Regional Analysis: North American Free Trade Agreement Generally, globalization has affected manynations in various ways; economically, politically, and socially. East Africa was classified the best REC in regional integration. Definition (i) Regional integration is a process in which states enter into a regional agreement in order to enhance regional cooperation through regional institutions and rules. Lack of adequate complementary policies and institutions may lead to inefficient outcomes. Regional Judicial and Legal Services Commission and our own Caribbean “Under the NAFTA, all non-tariff barriers to trade between the United States, Canada and Mexico were eliminated; many tariffs were eliminated immediately, with others being phased out over periods of 5 to 15 years” (U.S. Customs and Border Patrol, 2008). This would lead to better and effective use of the scarce resources available for each member country. the Board of the Caribbean Court of Justice Trust Fund, the members of the It was established back in the 1950s, Advantages and Disadvantages of Regional Integration in Business, Advantages and disadvantages of regional integration FTAs – advantages and disadvantages The healthy effects of such a regional economic integration are presumed to be as follows: 1. Regional Integration for and Against Articles. Rhetorically the advantages of regional integration in Africa were recognised even before the creation of the OAU in 1963. Regional integration has been beneficial to … Regional economic integration versus cooperation. One is approaching regional integration schemes no longer as venues for trading concessions but as common endeavors to achieve the regional purpose on which the progress of our economies in large measure depends. Since the development of the ASEAN trading bloc there have been no conflicts between the nations and they have pledged to peacefully resolve all settlements and disputes, this ensures that the regions live in a peaceful and harmonious... StudyMode - Premium and Free Essays, Term Papers & Book Notes. Avom By the same author. In 1994, the United States, Canada, and Mexico, reached an agreement that promised to remove all barriers to the free flow of goods and services between the countries and instituted a phasing out of tariffs and other fees to encourage free trade (InvestorWords, 2009). Therefore touching basis of contrast and comparing the development, The Advantages and Disadvantages of the CARICOM Single Market and Economy (CSME) The challenges of regional integration in Africa • page 1 Paper 145 • June 2007 Introduction It is widely acknowledged that Africa’s integration efforts have thus far failed to bear satisfactory fruit. Regional integration arrangements are mainly the outcome of necessity felt by nation-states to integrate their economies in order to achieve rapid economic development, decrease conflict, and build mutual trusts between the integrated units. ...Regional Integration sector and the labour unions of the CARICOM Member States, 2… In this regard, we wish to thank the Heads of Judiciaries and Chief Justices of Each country makes decisions and policies that position them to maximise the benefits and minimise the challenges presented Thereare many factors that lead to the speedy globalization trends. This agreement eliminated all tariffs on bilateral trade between the three countries United States, Canada, and Mexico. In the case of both the European Union and the East African Community there are three outstanding benefits that regional integration can bring. From when I first heard the term I immediately thought of countries integrating or joining together to achieve some goal. Regional integration is a process in which neighboring states enter into an agreement in order to upgrade … Benefits Of Regional Economic Integration. The Southern Rhodesia Customs Union was established in 1949 and the East African Community in 1967. The EU is at the sixth and penultimate stage of economic integration. 3.2.2 Dynamic Effects of Regional Economic Integration 43 3.2.3 Static and Dynamic Effects on African Countries 46 3.3 Benefits of regional economic integration 49 3.3.1 Policy Co‐ordination 50 3.4 Challenges associated with regional economic integration 52 Globalization has affected cultures and economies on matters dealing withenvironmental destruction and availability of the already limited resources.Globalization has had diverse implications for environmental issues such as,pollution, deforestation, water resources climate change, and biodiversity loss. The Caribbean economies have long recognized the value of working together. The existing literature has tended to focus on advantages and disadvantages of regional economic integration rather than assessing the contribution of various policy areas of integration. Integration and agreements made will reduce tariffs barriers that are associated with trades of goods, services and the factors of produced goods between countries (Hill, 2004). One of the most compelling arguments for regional integration in SSA is usually made on the basis of the fragmentation of sub-Saharan Africa, which has 47 small economies, with an average Gross Domestic Product (GDP) of US$4 billion, and a combined GDP equal to that of Belgium or 50% of the GDP of Spain. SADC Success Stories reveals that the regional integration agenda matters to people in southern Africa and has contributed to reducing poverty and enhancing the quality of life. data sources. The principal point of Free Trade Agreements is to secure trade liberalisation. A practical advantage of FTAs is that they are quicker and easier to negotiate than multilateral agreements because fewer, Discuss the benefits of the European Union (EU) for its member states. One was the integration of the ASEAN market. The second was the integration of the new members into the ASEAN regional body. This paper will analyze the role of regional integration in promoting global business and compare and contrast economic development stages of the countries included under the North American Free Trade Agreement (NAFTA). The Association of the Southeast Asian Nations has created such a trading block between 10 nations over three decades ago which has been helping to build and sustain the economy of these nations in Southeast Asia. There are four main types of regional economic integration. The European Union The EU has enforced a standardized law system that applies to all member states which has helped it to develop to a single market(Nugent, 2006). Free trade area.This is the most basic form of economic cooperation. Introduction Integrating regions into a trading bloc can have some positive and influential aspects for the countries within that trading bloc. Regional economic integration is fast becoming a major factor in promoting global business. In our childhood we all have read that story where it is easier to break one piece of wood but when there are multiple pieces of woods attached than it is very difficult to break them. In this paper, I will select a region, chose a trading bloc within that region, and write an article in favor of regional integration and another against it. There are challenges that must be met to take full advantage of the benefits that vertical integration can provide. Regional integration is an arrangement where countries in the same region enter into an agreement to enhance economic cooperation through agreed institutions and rules, focused on removing barriers to free trade in the region, increasing the free movement of people, labour, goods, and capital across national borders. In order to have a better idea about this concept, one should look a… All eight countries are also members of the ECOWAS, a larger regional grouping which also includes Nigeria. Chris Fischbach 4 As this paper will demonstrate a proper analysis of how integration will promote global advantages in business, and will deliberate the disadvantages and advantages of integration. Regional Integration Paper The EU, CIO Briefing for Information System Acquisition in a Healthcare Organization, Comparing Films Made From Books: 'Never Let Me Go' and 'Shutter Island', Rehabilitation Programs vs. Incarceration, Ethical and Social Responsibility Issues at Nike. 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