Global Business Strategies – MGT/448
Regional Integration For and Against Articles
Regional Integration in the European Union has both positive and negative effects for the countries involved and the global marketplace. The arguments in favor of or against regional integration are economic and political. Beginning with a review of the advantages and disadvantages of regional integration in the European Union demonstrates the legitimate points from both sides. Concluding by relating the stage of economic development in the region to business opportunities highlights the successes and challenges in regional integration. Those for and against regional integration have vital arguments to analyze. For Regional Integration
Regional Integration in the European Union has both economic and political advantages. Integration reduces trade barriers within a region and according to Hill (2009), countries can specialize in the production of goods and services more effectively when unrestricted free trade exists. This creates greater world production and stimulates economic growth. Regional integration also increases the exchange of technology and knowledge furthering economic growth. In the European Union, integrating the countries increased the economic and political weight of each member state and increased its chance to compete against larger countries, such as the United States, in the global market.
Another economic and political advantage to regional integration is the decrease of government intervention. With the vast political and cultural factors across the world, bringing countries to agreements on trade issues is a monumental challenge. By integrating regionally, fewer countries are involved and agreements are more attainable. When creating the European Union as the European Community in 1957, the region sought to prevent further wars by linking the economies of each member state. Through the regional...